BoG approves sale of TTB to Ecobank
The Bank of Ghana (BoG) has approved the merger between Ecobank and The Trust Bank (TTB). This was after the three-member committee set up by the BoG to scrutinize the deal presented its findings to the Central Bank.
BoG subsequently met top officials of the two banks on Thursday over the outcome of the committee’s findings.
The merger process was halted by the BoG following agitations from some groups protesting the merger. This means the share-swap process will recommence immediately.
The Social Security and National Insurance Trust (SNITT) will now offload its 6. 11 per cent interest in TTB to Ecobank.
The process was initiated a couple of weeks earlier but was halted by the BoG a day after shareholders of TTB unanimously voted that the shares be swapped. After the swap the integration process will take off.
All the workers of TTB are guaranteed their jobs unless anyone is willing to resign. This is expected to settle allegations of potential job losses after the merger.
Meanwhile, the Progressive Road-Contractors Association (PROCA) has expressed utter outrage at BoG for approving the sale.
PROCA’s Business Development Manager, Prince Banyerah however told Joy Business the development is most unfortunate because it only bears far-reaching negative consequences for the country’s economic development.
“What the government has done is not in the interest of the nation; I’m telling you as an association, it is not in the interest of the nation; it is in the interest of some few people and with their political power, they have pushed this thing through.”
According to him, even though they are utterly disappointed by the Central Bank’s decision, they are not exactly surprised given the composition of the panel as well as the turn of events at the hearings.
Mr Banyerah said the committee instead being open minded and listening to stakeholders appeared an interested party tried to prevail on contractors opposing the take-over to accept the deal. He added that the association was due to meet later to officially respond to the Central Bank’s decision.
Against the backdrop of concerns by some petitioners that the take-over would negatively affect SME financing, a monitoring team has been put in place to adequately address the issues.
Accra, May 17, 2012
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