Peacefmonline.com can confirm that the proposed merger of First Atlantic Bank and Energy Commercial Bank is receiving the attention of the regulator and its “No Objection” approval is expected shortly.
Analysts close to the transaction confirm that the combination of the banks will enable them meet the Ghc400m capital requirement given their current combined capital base and additional funds received from investors including Private Equity firms who are excited about the prospects of the combined entity.
They are set to become a top 10 player with very high liquidity and profitability ratios.
First Atlantic Bank assured customers in May this year that it is positive of meeting the 400 million cedis capital requirement set by the Bank of Ghana.
According to the bank, it has secured money from a private equity firm, hence will meet the requirement as stated by the regulator.
First Atlantic Bank (“FAB”) early this year officially signed an investment agreement with Advanced Finance & Investment Group (“AFIG Funds”), manager of AFIG Fund II (“Fund II” or the “Fund”) to strengthen its capital base.
The investment which has the approval of the Bank of Ghana was part of the bank’s strategy towards recapitalization before the end of the year.
First Atlantic Bank has signed a deal to acquire The Energy Commercial Bank Limited.
The acquisition will increase the two banks capital beyond the stated Ghc 400million set by the BOG and will position the bank in the top 10 league of best performing banks in Ghana.
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