Bayport Financial Services, a finance house, is set to become a savings and loans company after an expected merger with CFC Savings and Loans Company.
With both companies having the same majority shareholder, Bayport Management Limited (BML), management of both companies believe it is a step in the right direction to merge and leverage on each other’s synergies to grow and become a stronger entity.
Waiting for final regulatory approval from the Bank of Ghana (BoG), the merger will be undertaken through a share swap or an all stock merger where shareholders in CFC Savings and Loans, including pension giant SSNIT, will now have a stake in the merged company, to be known as Bayport Ghana.
Managing Director of Bayport Financial Services, Kofi Adu Mensah, explained that 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.
“Bayport Ghana, the surviving entity from the business consolidation, will seek a change in license from BoG from a finance house to a savings and loans company in order to offer all the products currently offered by CFC which include current and savings accounts, transactional services on GHIPSS platform, personal loans, and bancassurance products to the formal and informal sectors in Ghana,” he said as the company took its turn at the Ghana Stock Exchange (GSE) organized ‘Facts Behind the Figures”.
The merger will see customer base rise from 103,000 to over 130,000 whiles branches will also increase from 32 to almost 50 branches.
The company has so far raised a total of GH¢128million from the intended GH¢200million and Mr. Mensah is hopeful that due to the oversubscription seen this year, raising the rest in the second and third quarters of 2017 will be smooth.
“The company is doing very well since we came onto the stock market. We came here to borrow money to replace foreign denominated facility on our balance sheet which was affecting our performance due to the exchange rate.