Three companies lead race to take over STC

Suvini, Tanink Group and J.A. Plant Pool have all declared their interest in acquiring majority stake in the ailing Intercity STC Coaches Limited (STC).

A company source told the B&FT the three companies lead the pack to secure the 80 percent stake of the Social Security and National Insurance Trust (SSNIT) in the transport company at a value of GH¢87million. Government is expected to retain its 20 percent share as minority shareholder.

It is understood that global accounting firms KPMG and PwC have valued the company and provided advisory services, respectively, to help SSNIT select a new investor.

As its domestic operations suffer, STC has been relying heavily on cross-country trips from Accra to Abidjan, Lomé and Cotonou for the bulk of its revenue. The cash-strapped company earns between GH¢300,000 and GH¢400,000 from inter-country trips every month.

“There are a lot of activities on those routes. STC makes as much as CFA 100 million per month. That’s what is used to pay the about GH¢250,000 salaries of workers every month,” the source said.

President John Mahama last week held discussions with the management of Swedish automobile company Scania Group for the supply of buses to STC and Metro Mass Transit Company as part of plans to improve the public transport system in the country.

Tanink Group, one of the company’s bidding to acquire STC, runs car dealerships, a travel company and other businesses including Tanink Petroleum, which has initial interest in the downstream sector.

J.A. Plant Pool is a mining and construction equipment dealer operating as a subsidiary of Jospong Group of Companies.