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Sahel Sahara and Omni Bank become latest to merge

The two banks have agreed to consolidate their operations into one entity in order to meet the Bank of Ghana’s new minimum capital demand of GH¢400 million.

The two banks have agreed to consolidate their operations into one entity in order to meet the Bank of Ghana’s new minimum capital demand of GH¢400 million by December this year.

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Sahel Sahara bank earlier entered into a merger deal with the GN and Premium banks, but has now opted out to rather merge with Omni Bank.

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The Graphic Online reports that the Central Bank has already approved the consolidation of the two banks, with a formal announcement expected later this month.

When successfully consummated, the deal could create a larger bank with almost 1,000 employees on its payroll and 46 branches, servicing customers in seven regions nationwide.

The total assets of the new bank are also expected to be in excess of GH¢1.3 billion, while stated capital would be around GH¢213 million.

However, the amount would still be way below the Bank of Ghana’s new minimum capital of GH¢400 million.

Meanwhile, a retired Deputy Governor of the BoG, Emmanuel Asiedu-Mante, believes it is not right to approve the merger of the two banks when they cannot meet the minimum capital.

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“Why will two banks merge and still not meet the minimum capital?

“If they cannot meet, then they must as well go their separate ways because the idea is to make a stronger bank out of the two. But if you are going to merge and still not meet some key requirements, then there is absolutely no justification for a merger,” Mr. Asiedu-Mante is quoted as saying by the Graphic Online.

The Omni Bank is a subsidiary of the Jospong Group, whiles the Sahel Sahara Bank is owned by 13 Sahelian countries.

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