Omni Bank and Sahel Sahara Bank (BISC) are in serious talks that could end up with these two institutions merging their operations. According to sources discussions are far advance with an announcement is expected in the coming days.
Why?
The move has been influenced by challenges in meeting the new capital requirement of 400 million cedis by the December this year.
Sahel Bank according to its half year results for 2018 shows that it has a stated capital of 71 million Ghana cedis.
Omni Bank on the other hand has about 141 million cedis according the institution’s published financial results. This should mean that even if the two institutions should merge, they would have about 212 million Ghana cedis as the stated capital, still short of the required 400 million cedis.
It is not clear for now whether these institutions can benefit from the fund or the loan package available for financial institutions by government for institutions that want to merge, or may be they may depend on their income surplus or look for fresh capital from private investors to recapitalize.
Status of discussion
Sources say the “said talks” have gone very far, with a formal request sent to the regulator for consideration. Looking at the Bank of Ghana’s plan to encourage institutions that are struggling to recapitalize, it is likely this proposal might be approved by the regulator.
Announcement could be made soon by one of the two banks or even the Bank of Ghana,the source says
Implications on GN Bank merger talks
There were reports that GN Bank was in talks to merge with Premium Bank and Sahel Sahara Bank, with talks said to have gone very far. We even reported that a formal request was sent to the Bank of Ghana for consideration.
The Head of Banking Supervision Osei Gyasi even told the source it had received the request and had sought some clarifications from the interested parties.
At the time of putting out this story, we had not been able to get a formal responds from GN Bank and Premium on this proposed merger between Sahel and Omni Bank.
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