Govt to cede 40% stake in troubled Neoplan

Government is finalizing processes to give away 40% of its stake in Neoplan Ghana Limited after intervening early this year to stop the company from collapse.

Neoplan, a coach manufacturing business, has been in operation since the 1970s and was expected to shut down on Friday, January 31, 2020, because it was no longer viable.

However, the government subsequently pulled the breaks on the processes to get the company to close down.

Providing updates about the status of the troubled company on Monday, September 21, 2020, Director-General of the State Interests and Governance Authority (SIGA), Stephen Asamoah Boateng, said the government intends to recapitalize the company by ceding 40% of its 55% stake in the automobile firm.

SIGA is mandated to ensure that the investments made by the State in State-owned Enterprises (SOEs), Joint Venture Companies (JVCs) and Other State Entities (OSEs) yield positive returns.

“We are looking at giving 20% to the Fadoul Group [which currently owns 45% stake in the company] and another 20% for to a new investor so that we [government] own 15%,” Mr Asamoah Boateng said.

He said although Neoplan is still operating, it has not been engaged in production because it is yet to receive supplies.

“No business has come to them. The MD has bid for businesses and looking for some support…I have written on their behalf to Ghana Revenue Authority and SSNIT to support them because there were few problems with the payments of taxes,” he said.

Mr Asamoah Boateng also disclosed that there is a long-term plan to resuscitate the company.