Business News of Mon, 10 Sep 20184
Home-based carrier likely to list on stock market – Minister
Aviation Minister, Joseph Kofi Adda has hinted of a possible listing of the new national carrier on the stock exchange to allow the public own a stake in the company.
This he says should improve the capitalization of the new entity and make it more efficient.
The Minister made the remarks in response to a question on the progress of negotiations with prospective investors for the operation of the home based carrier.
“I think a good idea is to float some of those shares on the Ghana Stock Exchange where Ghanaians can buy shares and then we will also own it. When we do that, then we have a Board that represents all the stakeholders and then they can meet and then take policy decisions on business and make sure that we are efficient, get some returns or whatever investments we put in there, dividends will be paid,” he stated.
The government is currently seeking a partner for the home-based carrier after the collapse of the national airline, couple of years ago.
The then Ghana Airways was a national airline company operated by the government.
But several administrative lapses which impacted heavily on profits and sustained operations, have been cited for its collapse.
The move to revive the national airline business was initialled by the erstwhile NDC administration.
The decision has since been that the government will not operate the airline but rather a private company will be fully responsible for the investment and operationalisation of the entity.
The state will only have a stake which it will negotiate for, with the investors.
For now, at least three airline companies have been in discussion with the government of Ghana for the partnership.
They include; Ethiopian Airlines, Abu Dhabi Airlines as well as Air Mauritius.
The percentage to be owned by the state yet to be determined but Mr. Adda believes the new financial plan should also boost Ghana’s aviation industry.
“We haven’t fixed a percentage yet but we are looking at what other countries have done which is anywhere around ten to fifteen percent to be owned by the state and the rest of it will be sold out to whoever wishes to invest.”