Republic Bank says it now controls 40 per cent of the HFC Bank Ghana, after acquiring an additional 7.98 per cent shareholding in the financial institution.
In a statement, the Trinidad-based bank said that it purchased 23,638,340 ordinary shares at a price of GHS 0.67 (US$0.31) per share, making it the single largest shareholder in HFC Bank Ghana.
Republic Bank earlier held a 32.02 per cent shareholding in the Ghanaian bank. The share purchase was made on June 26 on the Ghana Stock Exchange and represented shares previously held by Union Bank of Nigeria.
Republic Bank Managing Director David Dulal-Whiteway said the acquisition emphasised its philosophy of maintaining strong local participation in all of its overseas investments.
Strong Local Ownership
"A look at our subsidiaries will illustrate our model of maintaining strong local ownership through shareholders who are representative of the respective market. While we think like a global bank, we always try to act local in our business dealings, ensuring that there is strong local input, strong local content and knowledge, and strong local influence in decision making. Our investment in HFC Bank Ghana will be no different," he said.
HFC Bank (Ghana) was licensed as a commercial bank in 2003, and operates 26 branches throughout Ghana, providing a wide range of banking services, including mortgages and real estate services, commercial banking, investment banking, microfinance, private equity and venture capital fund management.
It was instrumental in the development of the mortgage industry in Ghana and continues to be the leading home loan provider in that country, commanding 30 per cent of the market. HFC Bank has an asset base of US$301 million and profit after taxation of US$7.7 million based on its last published financials.