Prime News Ghana

Heritage, Premium and GN banks in merger talks to meet minimum capital

By Clement Edward Kumsah

Three banks, GN Bank, Heritage Bank and Premium Bank have initiated merger talks and have consequently informed the Bank of Ghana (BoG) about their intent.

The deal forms part of moves to meet the Bank of Ghana’s (BoG’s) new minimum capital requirement of GH¢400 million by December this year.

A similar conversation was initiated between GN, Premium and Sahel Sahara but Sahel Sahara exited the merger deal into the waiting arms of Omni Bank, which specialises in servicing Small and Medium Enterprises (SMEs).

According to reports, GN Bank is spearheading the new move to bring Heritage bank on board and the transaction is being led by Gold Coast Fund Management, a subsidiary of Dr Paa Kwesi Nduom's Groupe Nduom.

In a related development, Omnibank and Sahel Sahara bank are hopeful meetings of meeting the new minimum capital requirement by December 2018.

The two banks which are in a process to merge say their hopeful that the stronger bank to be created will support the country’s financial sector.

Following the Bank of Ghana’s, no objection to the merger on August 14, 2018; the two banks have since signed a Memorandum of Understanding (MoU) to govern their intention to merge.

They have also commenced the process to meet all requirements for final approval by the central bank.

According to the two banks, the merger, when finally completed, will position the new entity as a major player in the banking industry to support private sector growth and Ghana’s development agenda.

Some of the key things that they have to meet before final approval from the central bank include; ensuring that only fit and proper persons shall own and manage the institutions as well as comply with all applicable regulatory requirements and other prudential norms of the Bank of Ghana.

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