Bayport Financial Services Ghana (Plc) and CFC Savings and Loans Limited are awaiting approval from the Bank of Ghana to merge their operations.
When approved, it will consolidate both businesses via a share swap instead of having two subsidiaries in Ghana in the same line of business.
Bayport Management Limited (BML) is the majority shareholder in both Bayport Ghana and CFC Savings and Loans Limited (CFC).
Mr. Kofi Adu-Mensah, Managing Director of Bayport Ghana Limited who announced this said, “A combined business will allow the merged entity to provide mass retail modern financial services and products to both the informal and formal sectors covering both micro and small enterprises in Ghana.”
He was speaking in Accra at the Facts behind the Figures programme of the Ghana Stock Exchange to discuss the company’s operations with brokers, investors, media and shareholders.
Mr. Adu-Mensah said Bayport Ghana, the surviving entity from the business consolidation, would seek a change in license from Bank of Ghana from a Finance House to a Savings & Loans Company in order to offer all the products currently offered by CFC.
The merged entity will be a Savings and Loans company and will leverage on business lines already existing at BFSG and CFC, however will further enhance sub-product range, channels and capabilities
Mr. Adu-Mensah said an application had been made to the Bank of Ghana for the approval of the merger and conversion to a Savings and Loans company, adding that all merger approvals are expected by end December 2016 and financial and operational integration will begin from 1 January 2017.
He said Fidelity Bank Limited, as Note Trustee, has also granted their consent for the merger and change to a Savings and Loans company while the Securities and Exchange Commission had also been notified of the merger.
Mr. Gabby Quartey, Chief Finance Officer, Bayport said as at September this year, the company disbursed loans totaled GHS 270.5 million to customers.
“Our assets rose to GHS 354.9 million during the period under review,” he said adding that about 90 per cent of the loans came from the payroll portfolio.
By David Adadevoh