Republic Bank Limited has stated that its mandatory offer to shareholders of HFC Bank will be available until May 7, 2015.

The Trinidadian bank has directed all shareholders of HFC to go to website of the Ghana Stock Exchange (www.gse.com) to access the Offer Document.

"The Offer period closes on Thursday May 7, 2015, which is 30 working days from the submission by Republic Bank to HFC Bank of the Offer document on Tuesday 24 March, 2015. Shares may be tendered during the Offer Period at the offices of New World Securities Limited (email: tanya-m@newworldgh.com; website: www.newworldgh.com), the sponsoring brokers of Republic Bank", Republic Bank said in a press statement Wednesday.

"The share price that has been offered by Republic Bank to shareholders is GHS1.60 per share payable in cash. This represents a premium of 18% above the average price of HFC Bank shares for the year to date and 20% above the Friday March 20, 2015, closing price of GHS 1.33 - the trading day preceding the delivery of the Offer to HFC".

Jacqueline Quamina, Group Legal Counsel for Republic Bank, said, “We are pleased that shareholders have the opportunity to consider this attractive offer from Republic Bank and obtain good value from their investments in HFC Bank. We look forward to a smooth conduct of the MTO and to being able to make further investments in Ghana and contribute to the development of Ghana and the wellbeing of Ghanaians”.

The Bank, following due process, delivered the Offer Document to HFC Bank, setting out the mandatory offer that Republic Bank is required to make to all shareholders after crossing the 30% shareholding level in HFC Bank.

While the document is available on the website of the Ghana Stock Exchange for immediate use by shareholders, in keeping with the MTO process, HFC Bank is also required to ensure that a copy of the Offer is delivered to each shareholder and Republic Bank looks forward to HFC Bank's fulfilment of this obligation.

Using the Friday March 20 closing price of GHS 1.33, HFC shares have appreciated by 196% since December 2012, when Republic Bank entered HFC via its initial investment.

This compares favourably with the five-year period preceding Republic Bank’s investment when the organisation showed a capital loss of 17%.

HFC traded at GHS 0.45 as of December 2012, which was in line with the GHS 0.42 offer to existing shareholders via the private placement.

The offer price represents more than eight times 2014 earnings (GHS 57.9 million), which compares favourably to its publicly listed peers in the Ghanaian banking sector.