Republic Bank remains committed to respecting Ghana’s laws in its HFC takeover

Republic Bank has reiterated its commitment to adhere to the rules and regulations of the Bank of Ghana in its acquisition of HFC Bank.

The Bank which is now the single largest shareholder in HFC Bank with 40 per cent shares has faced some opposition in its attempt to acquire HFC.

The Bank reportedly made a mandatory offer of 1.60 cedis to its prospective shareholders as part of attempts to takeover HFC.

But a recent statement issued by the Board of HFC, among other things, accused the Republic of a hostile takeover, worsening an already strained transaction.

Republic Bank has expressed concern about the statement, insisting it will follow due process in its takeover.

“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 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.

“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 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,” the statement said.

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