SOCIAL SECURITY AND NATIONAL INSURANCE TRUST

Published on 14 June, 2024.

Documents emerging have revealed that Rock City Hotel emerged as the preferred bidder, demonstrating strong technical and financial capabilities in the purchase of 60% Shares in Hotels in contention.

It would be recalled that Samuel Okudjeto Ablakwa raised certain issues regarding the sale of SSNIT shares in La Pal Royal Beach Hotel, Elmina Beach Resort, Busua Beach Resort, Ridge Royal Hotel, Trust Lodge and

Labadi Beach Hotel. However, latest information coming in indicate reveals the details of the said transactions.

According to the document, negotiations are underway for the sale of a 60% stake in four hotels, while bids for the remaining two hotels were deemed unsuccessful based on the criteria outlined in the request for proposals.

Valuation methods, including the price of recent investment, were employed to assess

the bids.

According to the document, Rock City Hotel’s offers surpassed the valuation placed on the hotels, indicating a favorable outcome for SSNIT.

Additionally, the sale of the Grand Regency hotel yielded a gain compared to its valuation, further underscoring the trust’s prudent investment decisions.

The Social Security and National Insurance Trust (SSNIT) has issued a detailed document justifying its decision to sell 60% shares in each of the six hotels under its ownership.

The rationale behind the sale, according to SSNIT, extends beyond raising capital. By involving experts in hotel management, SSNIT aims to mitigate investment risks and ultimately enhance investment returns.

Key to this strategy is the restructuring of non-performing companies, which SSNIT prioritizes as part of its investment management approach.

The procurement process for the sale was meticulous, with SSNIT adhering to interna-

tional competitive tendering processes.

The selection of a transaction advisor, according to the document, involved rigorous evaluation, with SEM Capital emerging as the most competitive bidder. SEM Capital, along with its consortium partners, facilitated the valuation of the hotels and provided essential consultancy services.

Their involvement included due diligence and the setup of a data room for potential bidders. The transaction advisor’s fees were shared among the consortium members, with SEM Capital receiving 80% upfront and the remainder upon completion of the transaction.

Regarding the selection of a strategic investor, SSNIT conducted an expression of interest process, attracting nine companies.

In summary, SSNIT’s decision to sell shares in its hotels is underpinned by a commitment to pension security and prudent investment management.

The thorough procurement process and selection of reputable advisors reflect SSNIT’s dedication to transparency and maximizing returns for its contributors.

Reference:

The New Crusading Guide. (2024, June 13). Ablakwa’s ‘Ugly’ Noise Exposed …Over Sale Of SSNIT Shares In Hotels To Rock City. The New Crusading Guide, 16(087), 3.