Fidelity Bank acquires ProCredit

Fidelity Bank Ghana Limited has acquired 100 percent ownership of ProCredit Savings and Loans Company Limited, otherwise known as ProCredit Ghana.

A statement jointly issued by Fidelity Bank Ghana Limited and ProCredit Holding Germany (PCH) said that the two entities “have agreed, in principle, for Fidelity to acquire 100% ownership of ProCredit Savings and Loans Company Limited”.

The transaction, which is subject to Bank of Ghana and shareholders’ approval and the completion of other closing conditions, will entail Fidelity purchasing all of the shares currently held by the two shareholders, PCH and the DOEN Foundation of the Netherlands.

“The objective of the proposed acquisition is to enable ProCredit Ghana to transfer its strong SME processes and qualified staff to Fidelity to enhance the Bank’s SME strategy,” the statement said.

After the merger Fidelity will have a nationwide branch network of 80; 96 ATMs, 300 agencies and more than 700,000 customers across the country. The merger will also consolidate the bank‘s position as a top-six bank in Ghana with the third-largest branch network.

The transaction is, however, Helen Alexander, speaking on behalf of ProCredit Holding said: “ProCredit Ghana has played a pioneering role in serving small and medium-sized enterprises in Ghana since 2002.

"We are very proud of what we have achieved in Ghana, in terms of outreach, client impact, and staff capacity building. We are very confident that Fidelity Bank, backed by both Ghanaian and international investors, will offer excellent prospects for our clients and staff which only a universal bank can offer.”

The Managing Director of Fidelity Bank, Mr. Edward Effah, said: “Fidelity is fully committed to supporting the SME sector, which is the engine of growth of any economy. We recognise the unique value of ProCredit Ghana’s qualified staff, loyal client base, and extensive branch network which will facilitate Fidelity’s SME growth strategy and create value for all our stakeholders. Fidelity Bank has a strategic focus to provide services to all sectors of the market -- from high-end to the unbanked, and the SME sector forms a vital part of our target market".

Additionally, the Deputy Managing Director of Fidelity Bank Jim Baiden affirmed that "ProCredit Ghana is the missing piece in FBGL’s quest to build a world-class universal bank and contribute significantly to the economic development of our country.

The merger of the two businesses provides an excellent opportunity for Fidelity Bank to accelerate its footprint across Ghana, by acquiring a well-organised banking operation, using ProCredit's best practices in SME service delivery.

Sarah Tsien Zetterli, the Managing Director of ProCredit Ghana, reassured that: “Service to our cherished clients will continue uninterrupted by the merger. We have set ourselves a period of 12 months to gradually merge our respective operations, and during this transition phase ProCredit Ghana will operate as usual.

“The merger will ultimately benefit ProCredit’s clients and staff. The core of ProCredit Ghana’s long-term business strategy (SME banking) remains positive and we are delighted at the opportunity to become a part of the Fidelity Group."

Fidelity Bank was advised by IC Securities (Ghana) Ltd., Fidelity Securities Ltd., PwC and Bari & Co.