CDH, Phoenix to merge

In a move that could create one of the most significant mergers in Ghana’s financial services sector, Transnational Holdings -- the majority shareholders of CDH Financial Holdings Ltd. -- and CD Investments, the majority shareholder of Phoenix Holdings Ltd., are presently engaged in negotiations to explore the possibility of merging their two groups of financial services companies.
This potential merger could create a level of synergy that could make the new group the envy of any financial entity, and generate immense shareholder value.

CDH Financial Holdings comprises Ivory Finance Company Ltd, CDH Commodities Ltd, CDH Securities Ltd, and CDH Asset Management Ltd.  Ivory Finance Company is one of the best-performing finance houses in Ghana, and CDH Commodities Ltd. is a licenced buyer of cocoa, grains and steel. 

Other members of the CDH group are CDH Securities Ltd, a broker-dealer and a licenced dealing member of the Ghana Stock Exchange, and CDH Asset Management Ltd., asset and pensions fund manager.  CDH also holds a 20 percent stake in Accra City Hotel Ltd. (Novotel Accra).

Phoenix Holdings is made up of Phoenix Insurance Ltd. and Phoenix Life Assurance Company Ltd.  Phoenix Insurance is a top Ghanaian general insurer, and the twenty-second ranked member of the Ghana Club 100.  Phoenix Life Assurance Company Ltd. is a specialist life assurance company, ranked seventy-second on the Ghana Club 100.

Conceivably, the successful merger of these two financial services companies will create one of the most diversified groups in Ghana’s financial services sector to date. 

A source close to the merger negotiation process indicated that CDH sold its stake in CDH Insurance (now trading as Nsia Ghana) in 2009, as part of the restructuring process of the group.  The source added that this process of restructuring has reached a crucial phase, with the possible merger of CDH and Phoenix.

High level officials of the two organisations are now looking forward to a much bigger but more agile, flexible, nimble and efficient organisation that is better able to offer a diversified range of products and services.  

The merged entity will effectively create a financial powerhouse with expertise and experience in securities trading, asset management, general insurance, life assurance, short- and medium-term finance, commodities trading, and the hospitality and leisure sectors.

Divine Letsa, Chairman of Phoenix Insurance confirmed that the merger negotiations were indeed underway, adding that details will be made available at the right time.  

Emmanuel Adu-Sarkodee, Group Chief Executive Officer of CDH Financial Holdings Ltd., confirmed the on-going merger talks and indicated that further details will be made available once a decision is reached and the regulatory requirements have been met.

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