BUSINESS GUIDE has learnt that Republic Bank Limited of Trinidad & Tobago has in its haste to acquire HFC Bank committed a regulatory blunder, which lends credence to HFC Board’s concerns over Republic Bank compliance with the applicable legal and regulatory requirements under Ghanaian law.
In a Securities and Exchange Commission’s (SEC) letter of 2 nd May 2014 to one of Republic Bank’s advisers, New World Securities, SEC drew Republic Bank’s attention to a serious infringement of the rules of the SEC Code on Takeover & Mergers.
SEC described as irregular the publication of a revised offer price, as well as its inclusion in the offer statement made in the Daily Graphic by the Trinidad & Tobago bank, without the Regulator’s prior approval.
These, the letter warns, are in contravention of Rule 5.5 of the SEC Code on Takeover & Mergers.
Republic Bank has therefore been strongly advised to ensure that it follows the prescribed rules under the SEC Code.
By Samuel Boadi
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