THE InterCity STC Coaches Limited (STC) is up for graps by private investors who have the nerve to withstand the various challenges in the country’s transport business. But who is interested? Maxwell Adombila Akalaare peeps into the bidding room of the debt-ridden transport company.
PRIVATE investors interested in reviving and running a transport business in Ghana have started tickling the Transport Ministry as they battle it out for an opportunity to own a part of the InterCity STC Coaches Limited currently under a debt crisis.
Among the companies presently doing the underground bidding include other passenger transport companies, vehicle distribution companies and individual business gurus interested in taking over from SSNIT’s current majority shareholding in STC.
Vanef Consortium Limited (VCL), the company that won a Divertiture Implementation Committee (DIC) bid in 1998 to take over STC is, however, absent on the list.
The battle to own a part of STC followed government’s open intentions of returning SSNIT’s 80 per cent equity in the company to any private investor that may so desire, citing SSNIT’s unwilligness to invest in the transport company as bases.
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| Weak managenment has eroded STC's image |
The Trust has often said that its business portfolio of keeping watch over people’s pensions bars it from gambling in investments, a believe that could have caused it not to “invest a pesewa in STC” after it took over as majority shareholder in STC from Vanef Consortium around 2003.
The Trust’s take over of Vanef’s shares was expected to boost investment in the company, including the procurement of more buses. Such expectations are, however, yet to see reality, nearly a decade after the SSNIT take over. STC currently owns 70 buses, out of which only 30 are roadworthy, a development that is causing intermittent breakdowns of its buses to the frustrations of its age-long passengers.
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| Mr Collins Dauda, Transport Minster |
“SSNIT is currently revaluing its shares in the company so as to arrive at what price tag to place on the trust’s 80 per cent shares in the company for the process to begin,” Mr Dauda said.
On the necessity of the move, Mr Dauda said “the business of transport in Ghana is best and efficiently managed by private investors who have the money and expertise to commit into the company and get it runing.”
Mr Dauda will, however, not mention the investors that have currently expressed interest in partnering the government to revive STC except to say “a number of investors have come up willing to take up SSNIT’s shares.”
SO WHO ARE THESE INVESTORS?
Local distributors of Yutong branded buses in the country, J A Plant Pool is one of them.
Signals picked by the GRAPHIC BUSINESS on the underground biddings indicated that Plant Pool which has been assisting the now staggering STC with technical assistance and prsented it with 10 buses this year is now rooting for the company’s 80 per cent stake.
The Transport Minister will, however, not confirm nor deny the information as he insisted on not commenting further.
Although Mr Lolu Akindele, the General Manager of Plant Pool will also not outrightly confirm the company’s interest in acquiring STC’s shares, he insisted on leaving “such a decision for my board to take.
“We have been assisting STC with a lot of things including buses and services and I must say our relationship in the past has been good so far. Investing in the company is something we can consider but such is a decision for my board to take and not me,” Mr Akindele added.
And for those who doubt the expertise of Plant Pool, a vehicle distributing company, in owning and running a transport company like STC, Mr Akindele said “the thing is all about experience. It is basically about management; understanding the dynamics of the business - whether running or selling vehicles - and that is what we Plant Pool have.”
STC’s current debt position, is however, a headache to the Plant Pool GM and his company’s board even though the board is yet to officially announce its bid for STC.
He noted that STC’s infrastrcuctural set-ups such as terminals and workshops across the country were “assets that make the company viable but its debt issue will definately be a headache.”
STC currently operates in five West African countries in addition to its regional routes in Ghana. The company also has 19 local and three international stations offering parcel services and package delivers to all of its destinations in addition to the passenger service.
Metro Mass Transit (MMT) Limited, another transport company in the country that has just weaned itself off government subventions also has its eyes on SSNIT’s shares at STC.
MMT is, meanwhile considered a weaker bidder for STC’s 80 per cent shares mainly because of its shareholding structure. The Government of Ghana holds 45 per cent of the company’s shares with the remaining 55 per cent being in the hands of other institutions, most of which are partly owned by the government).
It is thus not clear if the government will want to ‘own’ STC again after incessantly annoucing its readiness to bring in priavte investors.
There are also speculations of an American-based individual investor with particular interest in construction bidding for the stake.
There is however, less information on the said investor although sources close to the deal insisted the guru is a force to reckon with.
The Managing Director of STC (currently on leave) confirmed to the GRAPHIC BUSINESS on phone that more foreign investors were also interested in investing in STC.
He could, however not mention names but said “some are indidviduals with financial backings and some are also companies wanting to invest in STC .”
THE ACCUMULATED LEAVE
But as the underground bidding for STC continues, a new directive at the company has just sent almost all its regional managers, including its MD going on compulsory leaves.
Sources within STC told the GRAPHIC BUSINESS that the MD’s going followed a directive from the company’s board to that effect.
The source added that the board has consequently commenced investigations into Mr Attivor’s tenure as MD, an investigation Mr Attivor said was baseless.
“Set up a committee to investigate what? I have not done anything wrong. They can go ahead to do what they want but I am not afraid of anything,” he told the GRAPHIC BUSINESS on phone.
But should the board not recall him after his two year accumulated leave comes to an end this November, Brigadier Attivor said “I will find out why.”
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