Shareholders of UT Financial Services (UTFSL) on Tuesday approved a special resolution to buy UT Bank and gave the directors the mandate to obtain all regulatory approvals necessary for the deal.
UTFSL will pay for the 100 per cent acquisition through the issue of 91.
3 million shares to shareholders of UT Bank and consequently list the newly issued shares on the Ghana Stock Exchange.
The consolidation of UT Bank and UTFSL to form the merged entity would be concluded with a subsequent change of name of UTFSL to UT Bank.
UT Holdings Limited, a company owned by the two majority shareholders of UT Financials Services Limited in December 2008 acquired BPI Bank Ghana Limited and subsequently changed the name to UT Bank.
Prince Kofi Amoabeng, Chief Executive Officer of UTFSL, said a lot of synergies would be derived from the combination of the operations of the two financial institutions, hence the decision of the board to merge the two entities.
He said the acquisition was intended to position the newly merged entity to take advantage of growth and expansion opportunities within the banking sector in Ghana and therefore enhance value to all UTFSL shareholders and stakeholders.
Prince Amoabeng said since all banks now have universal banking licenses, the niche that UTFSL once enjoyed was fast becoming a target business opportunity for the 26 universal financial entities that are currently operational in Ghana.
It is in this direction that the Board and Management agreed that the future growth of UTFSL would be boosted by the ability to acquire a universal banking licence and offer the full gamut of banking services within the Ghanaian market.
Overall profit stood at 7.
5 million and 42 per cent above 2008.
A dividend of 1.
07 pesewas was declared and approved by shareholders.