The biggest financial institution in the Caribbean, Republic Bank has announced its decision to make a mandatory offer to the shareholders of HFC Bank.

The announcement was contained in a circular issued by the Ghana Stock Exchange to shareholders this morning.   

If the offer is successful, it could lead to Republic Bank becoming the majority shareholder of HFC Bank and possibly take over the institution.

Republic is making this offer after the Bank of Ghana gave them the approval in April 11 and 14 to go ahead with the move.

The Caribbean Bank last year increased its shareholding in HFC Bank, but asked the Bank of Ghana for a waiver not to take over the bank then.

The Executive Director in charge of Risk Management at HFC who was recently nominated by Republic Bank  told Joy Business last year that they don't want to rush the takeover.

According to them, they still need to get a deeper understanding of the Ghanaian market before they look at the option of a takeover.