Ghana Pension Fund Won’t Sell HFC Bank Stake to Trinidad Lender

Ghana’s state pension fund has no plans to sell its stake in HFC Bank Ghana Ltd. to Trinidad and Tobago-based Republic Bank Ltd., thwarting the Caribbean lender’s plans to boost its investment in the West African bank.

The Social Security and National Insurance Trust has received good dividends from HFC, Noel Addo, general manager for investment and development at the retirement-fund manager based in the capital, Accra, said in an interview on Friday.

“We’re not ready to sell at this moment,” Addo said. “HFC Bank is a good stock.”

Republic Bank, which holds 40 percent of mortgage-lender HFC, wants to boost its stake to 75 percent. It’s offering 1.60 cedis a share to current investors in the bid that opened on March 24 and closes May 7. The pension fund holds 26.09 percent, according to data compiled by Bloomberg, making it the second-biggest shareholder.

HFC’s shares gained 24 percent over the past 12 months and traded unchanged at 1.55 cedis by 12:53 p.m. in Accra.

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