Republic Bank last week announced an increase in its shareholding in HFC Bank to 57.11 percent, following a successful offer to the shareholders of HFC Bank (Ghana).
This gives Republic Bank majority ownership and makes HFC Bank the fifth banking subsidiary within the Republic Bank Group.
Republic Bank Limited is the largest and most successful independent commercial bank in the English-speaking Caribbean.
The Bank has served retail-banking customers, corporate clients and governments throughout the region for 176 years. It employs over 4,300 people in 71 branches throughout Trinidad and Tobago, Grenada, Guyana, the Cayman Islands and Barbados.
The assets of Republic Bank Limited, as at September 30, 2014, stood at US$9.4billion, with equity at US$ 1.4 billion and profits attributable to shareholders for the year ended September 30, 2014, of US$192.0 million
The Managing Director of Republic Bank Limited, David Dulal-Whiteway, said: “We respect and honor the founders, staff and customers of HFC Bank who have made it what it is now and we look forward to steering HFC Bank toward becoming one of the leading banks in the country.”
Republic Bank has promised to keep its philosophy of maintaining strong local participation in its operations at HFC Bank.
“We will promote strong local ownership, ensuring that there is strong local input, strong local content and knowledge, and strong local influence in decision making, as we continue to think like a global bank, working with international best practice.” Dulal-Whiteway added.
Republic Bank also expressed gratitude to both individual and institutional shareholders of HFC Bank for the confidence they have shown in the Bank.
With the current level of shareholding, Republic Bank now has the mandate to partner with HFC in introducing innovations and modern trends into HFC Bank.
The offer period closed on May 7 after remaining open for the regulatory period of 30 working days. The Securities and Exchange Commission code on Takeovers and Mergers required Republic Bank to make a mandatory offer to all shareholders after it crossed 30% shareholding level in HFC Bank. Prior to the commencement of the Offer period, Republic Bank already owned 40% shareholding of HFC Bank
Dulal-Whiteway also spoke about Republic Bank’s committed focus on Ghana’s development. “Our key focus is to work with our partners, shareholders, and management and staff of HFC Bank to add value to the operations of HFC and contribute to economic growth and development in Ghana. Republic Bank is a long-term investor in HFC and we remain committed to our investment in HFC Bank. We also look forward to contributing significantly to the economic growth and development of Ghana and toward advancing our Africa strategy from this base.” he said.
Republic Bank has played a significant role in the oil and gas sector in Trinidad and Tobago and through its investment in, and collaboration with, HFC Bank, intends to bring that expertise and skill to Ghana for the benefit of the country’s energy industry and ultimately, the people of Ghana.
The mortgage market in Trinidad and Tobago is very well developed and Republic Bank continues to play a major role in the provision of mortgages to facilitate home ownership in the Trinidad and Tobago market, as well as in the other Caribbean territories of Barbados, Guyana and Grenada, where the Bank operates subsidiaries. The Bank’s market share in these markets is in excess of 40%.
Its mortgage portfolio currently stands at more than US$600 million in Trinidad and Tobago alone. Republic Bank intends to use its vast expertise in this area to enhance the mortgage offerings of HFC and help to grow that bank’s base, for the benefit of the home-owning public in Ghana.
Republic Bank’s seeks to add value to HFC Bank’s offerings and ability to serve the needs of the Ghanaian public. Republic Bank has a proud legacy of service in all markets in which it serves and is committed to creating value to all stakeholders, including its customers and the people of the respective countries in which it operates. In fact, Republic Bank’s support of its Caribbean subsidiaries has resulted in market share growth and increased profitability. It commits to bringing that value to HFC Bank.
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