Fidelity Bank acquires ProCredit Ghana
Fidelity Bank Ghana Limited is finalising talks to acquire 100 per cent ownership of ProCredit Savings and Loans Company Limited, Ghana.
This transaction will entail Fidelity purchasing all the shares currently held by the two shareholders, ProCredit Holding Germany (PCH) and DOEN Foundation of the Netherlands.
Fidelity and PCH announced on September 3 that the proposed acquisition was to enable ProCredit Ghana to transfer its strong small and medium enterprise (SME) processes and qualified staff to Fidelity to enhance the universal bank’s SME strategy.
After the acquisition, Fidelity would have a branch network of 80, 96 automated teller machines (ATMs), 300 agencies and more than 700,000 customers across the country, a statement from the two parties said.
It would also consolidate the bank’s position among the top six banks in the country with the third largest branch network.
The transaction is subject to the approval of the Bank of Ghana and that of shareholders’ approval, as well as the completion of other conditions.
The statement quoted Ms Helen Alexander, spokesperson for ProCredit Holding as saying, ‘ProCredit Ghana has played a pioneering role in serving small and medium-sized enterprises in Ghana since 2002. We are very proud of what we have achieved in Ghana in terms of outreach, client impact and staff capacity building.’
The Managing Director of Fidelity Bank, Mr Edward Effah, also said, ‘Fidelity is fully committed to supporting the SME sector which is the engine of growth of any economy. We recognise the unique value of ProCredit Ghana’s qualified staff, loyal client base and extensive branch network which will facilitate Fidelity’s SME growth strategy and create value for all our stakeholders’.
Fidelity Bank has a strategic focus to provide services to all sectors of the market; from high-end to the unbanked, and the SME sector forms a vital part of our target market.”
The Managing Director of ProCredit Ghana, Ms Sarah TsienZetterli, reassured that service to clients would continue uninterrupted by the merger.
‘We have set ourselves a period of 12 months to gradually merge our respective operations and during this transition phase, ProCredit Ghana will operate as usual,’ she said.
About ProCredit Ghana
ProCredit Savings and Loans Company Limited is an SME-focused financial institution and part of the international ProCredit Group which is headquartered in Frankfurt, Germany.
Operating in Ghana since 2002, it has extensive experience in supporting micro, small and medium-sized enterprises, and finances a wide range of business activities, including manufacturing and agriculture.
It also provides banking services to private individuals and institutions.
Fidelity Bank Ghana is currently the sixth largest bank in Ghana in terms of customer deposits.
It received its universal banking licence in 2006, making it the 22nd bank to be licensed by the Bank of Ghana under the new Banking Act, 2004 (Act 673).
Fidelity Bank is majority owned by Ghanaian institutional investors, including Africa Capital, SSNIT, SIC Life and also by Ghanaian individuals including its senior executives.
It also has foreign shareholders, including the KagisoTiso Holdings (KTH), Amethis Finance and Edmond de Rothschild Europportunities funds.
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