Shareholders not sidelined in UT/Capital Banks takeover – GCB Bank

The  GCB Bank Ltd,  has defended the seeming rush of the takeover of UT Bank and Capital without the necessary consultation with its shareholders.

The Chief Executive Officer (CEO) of  the Bank, Raymond Sowah told a Press Conference in Accra, a while ago that due diligence was followed in the acquisition of the two banks.

Following the revocation of the licenses of the two banks and the subsequent recapitalization by the GCB Bank, concerns have been raised on the takeover without the consent of its shareholders.

But Mr. Sowah insisted that the bank decisively shelved an emergency meeting with stakeholders over the takeover, because such issues could always be dealt with post assumption.

“If you were at the Bank of Ghana Press conference, they indicated the sensitivity of the matter, and therefore everything had to be hush hush, because they were concerned about certain things going wrong. Now we have a lot of respected shareholders. We could not say that we were going to conduct an AGM  or an EGM to ask this question. This is something we can deal with post assumption.”

Meanwhile, reacting to concerns about the status of the employees of the two banks, Mr. Sowah intimated that the necessary process will be followed in laying off some of the workers.

“…We shall conduct a skills assessment as part of integration process we need to know that we can bring everyone onboard or not. This is an expanded institution and as we go through the integration we should know what jobs to close down and what jobs to retain,” he said.

The GCB Bank Ltd has taken over the control of UT Bank and Capital Bank, a Press statement from the Bank of Ghana said Monday.

This follows the BoG’s approval of a Purchase and Assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.

According to the BoG, the move became necessary due to a “severe capital impairment” of the two financial institutions. has learnt some three banks bid to purchase the two banks where ‘GCB was selected amongst 3 others on the basis of purchase price, cost of funding, branches to be retained, staff to be employed and impact on the acquiring bank’s capital adequacy ratio’, the central bank said.

Notwithstanding this, the Bank of Ghana said deposits of customers are safe and banking operations of the two banks will continue as normal.

‘The Bank of Ghana assures the public that all customers can continue normal banking business at all UT Bank and Capital Bank facilities which are now branches of GCB bank’.



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