Due to the importance attached to merger and acquisitions, most organisations, especially financial institutions, have a department designated to the activities related to takeover activities. This is the most common kind of merger, which basically means that one company is absorbed into the other one.
This coupled with the broad recessions across the developed world has driven substantial interest in Ghana within the Africa-focused investor community. Merger and acquisition activities could also be explained in terms of purchase and pooling of interests. There are various laws aimed at curbing corruption in Ghana.
In most cases, the directors and management of the target firm throw their weight behind the alternative firm. It must be pointed out that delisting does not mean liquidation.
Takeovers A takeover is defined as the assumption of control especially of a business or the buying out of one company by another. Ghana does not particularly have a competition authority as seen in some other countries, so the clearance for a merger or a takeover is obtained from industry-specific regulators and must meet statutory legal requirements as set out in the industry-specific legislation.
It increased its stake in June, to Rule 1 4 states that the requirements in rules 1 12are not applicable to acquisitions by persons who have announced a firm intention to make an offer to a listed company and have also notified the GSE.
However, a close study of the Offer Circular does not make any specific reference to any such exemption. A petroleum agreement cannot be assigned without the consent of the sector minister.
An amalgamation is defined as any merger of the undertakings or part thereof or part of the undertakings of one or more companies and one or more bodies corporate. The success of most mergers is pivoted around mutual consent.
The Ghana Investment Promotion Centre ActActreserves certain activities such as the retail of finished pharmaceutical products and the printing of recharge scratch cards for Ghanaians and Ghanaian-owned businesses.
Similarly, a firm incorporated in the State of New York with branches limited to New York State may decide to merge with an organisation incorporated in the State of California. Geographic market extension mergers relate to two companies whose operating activities are concentrated in unrelated geographic locations.
The necessary legal formalities would have to be adhered to e. These licenses are not transferable to another person without the permission of the Fisheries Commission. Merger and acquisition activities could also be explained in terms of purchase and pooling of interests.
It is a quicker route for business growth when compared to the organic method.
Some of the activities experienced therein are the merger of Intercontinental Bank of Ghana and Access Bank. Other Regulatory Restrictions A number of sector specific laws restrict the level of foreign ownership in companies engaged in business in those specific sectors.
In the light of the foregoing, more disclosure, not less, was necessary. Rule 1 4 states that certain requirements shall not be applicable in case of a person who has announced a firm intention to make an offer to a listed company. Copeland and Weston and Weston and Copeland provide a concise account for how the tender offer is initiated.
Generally, a merger process may take up to days to complete. Management ownership in large corporations has witnessed a significant increase in recent years, although it was originally low. A statement of recognized gains and losses, changes in equity, except those arising from capital transactions with owners and distribution to owners; iii.
The decision to contact the shareowners of the target company may be rescinded if the directors and managers have a majority interest.
The Total Offer is a good example. Some are statutory and others are strategic. Conditional offers can be made. It is changing the business climate in Ghana and is worthy of note. It is therefore important the ground rules are made clear to avoid the controversy that has accompanied the acquisition of GBL by GGBL.
The success of most mergers is pivoted around mutual consent. This is referred to as a white knight.
Management tends to be hostile to bidding firms when its ownership in the target firm is low. Respectfully, rule 1 1 is not in contention as it is obviously not applicable. It is important to note that the shareholders of the corporate entity may have the same rights after the merger.
However, regulation 55 introduced a new quarterly reporting regime such that quarterly financial statements in defined form were to be filed with the regulators and published not later than one month from the end of the relevant quarter.A purchase involves the acquisition and absorption of a relatively smaller company into the acquiring company.
An example is the recent acquisition of North Fork Bank by Capital One Bank National Association (NA) in the United States of America; and the acquisition of ProCredit Ghana by Fidelity Bank in Ghana.
While mergers and acquisitions (M&As) have proven to be an important arrow in the quiver of any business at any stage of development - whether start up or mature and established, some experts in.
Mar 27, · Mergers and Acquisitions On The Ghana Stock Exchange (GSE) and Rule 1(4) of the GSE Takeovers and Mergers Rules– A Case Study of the Legal Basis of the Offer for the Shares of Ghana Breweries Ltd by Guinness Ghana Breweries Limited.
This feature is a continuation of an earlier publication on various financial theories propounded to explain factors underlying mergers and acquisitions. The Role of Mergers and Acquisitions in Firm Performance: A Ghanaian Case Study Simon K. Harvey University of Ghana Business School This study analyzes the impact of mergers and acquisition on performance of the acquiring firm using a t.
The mergers that occurred in the telecommunications sector and financial sector in are the most significant deals in Ghana within Airtel-tigo merger.Download