Republic Bank of Trinidad & Tobago confirms buying 8.9% stake in Ghana’s HFC for $8m
The Republic Bank of Trinidad & Tobago (T&T) has purchased 8.9% shares in HFC Bank Ghana for an amount of $8 million, the Caribbean bank confirmed in a statement December 11, 2012.
The bank bought the HFC stake when the Ghanaian bank floated additional 112,420,246 ordinary shares under a private placement concluded in November 2012. This has helped HFC Bank to increase its stated capital from GH¢45,000,624 to GH¢95,000,624.
The HFC Bank in a December 1, 2012 letter issued by its management to the Ghana Stock Exchange (GSE) confirmed the purchased made by the Republic Bank.
In its statement, Republic Bank said it bought the stake “in keeping with its expansion strategy and its focus on areas outside of its traditional Caribbean markets.”
Commenting on the purchase, Republic Bank’s Managing Director, David Dulal-Whiteway said that the Bank had been considering a number of overseas interests over the last few years, and decided on the HFC opportunity, following that Bank’s recent private placement to raise GH¢50 million. Republic Bank’s investment in the shares of HFC is put at $8 million.”
According to Dulal-Whiteway, the investment in HFC will open up for Republic Bank’s local business clients, new opportunities to do business on the African continent.
By Ekow Quandzie