Republic Bank Reacts To HFC
Republic Bank has expressed concern about allegations contained in a release issued by the Board of HFC in connection with its announcement on 16 April, 2014 about its mandatory offer to shareholders.
In a release issued on Thursday and signed by Michelle Palmer-Keizer, General Manager, Group Marketing and Communications, it noted: ‘From Republic Bank’s initial entry into Ghana in November 2012, it has consistently attempted to adhere to the rules and regulations laid down by the Bank of Ghana (BoG) and the Ghana Securities and Exchange Commission and where there has been ambiguity, Republic Bank has sought clarification and guidance from its Ghana advisors and the regulatory authorities.’
It stated that in November 2012, Republic Bank Limited and HFC Bank (Ghana) agreed to the framework for the investment by Republic Bank in HFC Bank.
The agreement, signed on 6th November, 2012, provided that RBL would not increase its shareholding in HFC Bank beyond 40% for a period of one year without the prior approval of the Board of Directors.
Both parties recognized that the mandatory takeover code would be triggered if Republic acquired over 30% during the one year period and that the process would have to be followed if the SEC’s approval was not obtained for a waiver.
‘Republic has always maintained the position that the mandatory offer requirement is a legal one, which cannot be set aside simply by an agreement between the relevant company and a shareholder.
‘Republic Bank values all relationships and strategic partnerships that they enter into, however, at no time will the value of those relationships supersede the laws in the countries in which they are operating.’
Republic Bank added that it seeks at all times to work with regulatory authorities and act in compliance with the laws of the land and agrees that the final decision on this matter will be made by the shareholders.
‘Republic Bank assures all HFC Bank stakeholders and the public of its long-term commitment to HFC Bank and to contributing to economic growth and development in Ghana through its investment in HFC Bank.’
By Samuel Boadi
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