Supreme Court okays shares offer to Republic Bank shareholders
The Supreme Court has given the Republic Bank Limited (RBL) the go-ahead to make mandatory offers to all shareholders of the HFC Bank under the ‘Takeover Code’ of the Securities and Exchange Commission (SEC).
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This followed the quashing of an earlier ruling by the Accra High Court that prevented the RBL from doing so.
By a unanimous decision, the five-member panel, presided over by Mr Justice William Atuguba, dismissed the suit initiated by HFC Bank against Republic Bank and the SEC.
The court made an order prohibiting the High Court from proceeding any further with the suit and also set aside the writ filed by HFC Bank.
Other members of the panel were: Mrs Justice Sophia Akuffo, Mrs Justice Vida Akoto-Bamfo, Mr Justice Baffoe-Bonnie and Mr Justice Sule Gbadegbe.
Background
The RBL had acquired over 30 per cent stake in HFC Bank, and was required by the Takeover Code of the Securities and Exchange Commission to make a mandatory offer to all the shareholders of HFC.
The management of HFC, disagreeing with the move, initiated an action in the High Court to prevent the start of the mandatory offer process.
Two other court cases initiated by some shareholders of HFC also sought to restrain the RBL from making a mandatory offer to all shareholders under the ‘Takeover Code’ of the SEC.
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In both cases, the courts upheld objections by lawyers for RBL and decided against the attempt by the plaintiffs to have the courts restrain RBL from proceeding with the mandatory offer to shareholders.
Writer’s email: victor.kwawukume@graphic.com.gh