Minister announces NPRA approval for sale of 60% of SSNIT’s hotel shares …following regulatory review

The Minister for Employment and Labour Relations, Ignatius Baffour-Awuah, has told lawmakers that the National Pensions Regulatory Authority (NPRA) has approved the sale of 60% of SSNIT’s shares in its hotel investment portfolio.

On June 28, the NPRA directed SSNIT to suspend its negotiations with Rock City over the sale of four hotels, pending further evaluation and engagement.

Answering questions on the floor of Parliament, the sector minister confirmed that all due processes have been followed.

“Yes, it is true that NPRA issued a directive, but I would appreciate it if my colleague thoroughly read the directive. It required SSNIT to provide all information relating to the sale of the hotels, which SSNIT has since done.

“So, it wasn’t a direct order for SSNIT to halt all actions, but rather that SSNIT could proceed once NPRA, the regulator in this field, had reviewed all the documentation and processes and found them satisfactory.

“As a minister, I can confirm that NPRA has since indicated they have reviewed the processes and believe SSNIT can proceed.”

He also outlined some reasons for the sale of SSNIT’s 60 percent shares in the hotels.

“SSNIT considered the sale of shares in its hotel investment portfolio as a strategic decision after multiple attempts at restructuring proved insufficient.

“Selling 60% of its shares is deemed the most viable solution to prevent further depletion of resources and to bring in private participation.”

“Is it a good business activity? Yes, because some of the investments are either generating low returns or incurring losses.

“While it is not the case for all investments, even those generating profits are yielding low returns.”

He also explained that SSNIT has been taking several strategic measures: rebalancing its investment portfolio, increasing investments in fixed income, reducing equity exposure, exiting or restructuring non-performing investments, improving the performance of investee companies, enhancing corporate governance, setting corporate targets, restructuring investee confidence, and monetizing real estate projects, including those in joint ventures.