SSNIT acquires 38.5% in CPC

THE Social Security and National Insurance Trust (SSNIT) has acquired 77 million shares valued at ?77 billion in Cocoa Processing Company (CPC). This represents about 38.5 per cent of the total shares offered by the company. The Public Affairs Manager of SSNIT, Mr Kweku Osei-Bimpong (pictured), who made this known in an interview, said the decision of the trust to acquire the shares was approved by its board of directors and it was based on the business potential of the company.

He, therefore, denied allegations that the trust has been directed by the government to acquire ?280 billion in CPC because of poor patronage of the shares. He further stated that, the decision also forms part of the review of the trust?s overall investment policy.

Mr Osei-Bimpong said the total value of shares put on the market by CPC was 215 million at ?1,000 per share, which brings the total value of the shares to ?215 billion and wondered how SSNIT could acquire more than what was offered for sale.

Mr Bimpong said the decision of the trust to acquire the shares also forms part of the its long-term plan to diversify its investments so that in the long term, it will be able to maximise the overall returns on its investments.

He mentioned, for instance, that SSNIT has investments in 17 out of the 23 companies listed on the Ghana Stock Exchange (GSE) and that makes ?SSNIT the major institutional investor on the stock market?.

Mr Osei-Bimpong said SSNIT as an institutional investor has the responsibility to assist in the development of the capital market in the country. For us as an institution with huge funds the availability of the capital market favours us as it is an alternative for the investment of pension funds.

?We have, therefore, since the inception of the stock exchange, been very supportive of its activities,? Mr Osei-Bimpong added.