Fortiz concludes deal to take over Merchant Bank
Indigenous equity firm, the Fortiz Private Equity Fund, has concluded the acquisition of some 90 per cent stake in Merchant Bank Ghana (MBG) Limited.
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That followed the successful meeting of all the requirements necessary for the deal to be sealed.
The requirements, which were set by the Bank of Ghana (BoG), included the deposition of the initial capital subscription of GH¢90 million into an escrow account at the BoG, the submission of five-year pro forma financial statements for Merchant Bank, the submission of a board resolution from the bank in support of the share acquisition by Fortiz, as well as the submission of detailed curricula vitae (CVs) and completed personality note forms for all directors and key management personnel of the bank.
Requirements of the deal
A statement from Fortiz said those requirements had been met as of November 29, making the acquisition of Merchant Bank from the Social Security and National Insurance Trust (SSNIT) and the SIC Financial Services Limited by the firm complete.
“Fortiz has met the requisite and immediate conditions set by the BoG and wish to thank the hardworking management and staff of Merchant Bank for their support through this process.
“We wish to thank the loyal customers of the bank who have stayed the course through the acquisition,” the statement, which was signed by the directors of Fortiz, said.
It added that Fortiz was in the process of forming a strong executive team to “execute the vision of the shareholders”.
“Our vision is to build a formidable indigenous bank within the next three years in order to become the most preferred bank in the country,” it said.
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Assurance
It also assured stakeholders of the bank of plans to re-launch it into a modern, world-class, indigenous banking institution.
The statement stressed that in addition to capital injection into the bank, the fund would aggressively pursue all defaulters and reinvest recovered bad loans into the bank to ensure a sizeable balance sheet.
“Recognising the importance of staff, we will also look to improving the working conditions of our team,” it added.
Urgent question in Parliament
Meanwhile, the NPP MP for Okaikoi Central, Mr Patrick Yaw Boamah, has filed an urgent question to compel the Minister of Finance, Mr Seth Terkper, to appear before Parliament to answer questions on the sale of Merchant Bank.
According to the MP, he filed the question about three weeks ago but the minister was yet to be scheduled to appear before the House.
Commenting on the sale of the bank, the NPP MP for New Juaben South, Dr Mark Assibey-Yeboah, said that the transaction “is daylight robbery. This is a dash from SSNIT to Fortiz, with the full blessing of the Bank of Ghana”.
He explained that SSNIT opted for a deal that did not give value for money, adding that the BoG had not conducted full and proper due diligence.
Dr Assibey-Yeboah said the Fortiz deal was a weak bid from an entity with no experience in banking.