JoyBusiness is reliably informed that First Atlantic Bank has reached an agreement to acquire Energy Commercial Bank.
Sources say the “agreement in principle” was finalised last week with the Board of First Atlantic Bank not objecting to the acquisition.
According to the sources, a final agreement could be reached this week, in terms of securing the firm approval from shareholders to close the deal.
The deal is, however, subject to also securing the approval from the Bank of Ghana.
We might have led to the planned “takeover”
According to sources, the “takeover” has come about as a result of the inability of Energy Bank to raise the required amount to help them meet the new BoG ¢400 million capital requirement.
Energy Bank was hoping to raise the remaining amount through its Initial Public Offering (IPO) to raise some ¢340 million cedis, which was not successful.
The development meant they had to extend the offer or turn somewhere else to raise the funds. The planned takeover would help the bank meet the new capital requirement.
About the two banks
Energy Bank Ghana Limited was incorporated in 2009 as a private limited liability company. Energy Commercial Bank presently operates 12 branches in Ghana- five in Accra, three in Kumasi, and the rest in Tema, Takoradi and Tamale.
Energy Bank’s third quarter financial ending September 2018 puts its stated capital at ¢60 million, while profit for the third quarter was at ¢966,000.
First Atlantic Bank started operations in 2011. According to its third-quarter results, the bank has posted a profit after tax of ¢18.9 million, while stated capital was put at ¢169 million.