Togbe Afede XIV
HAYIBOR, DJARBENG, Danso & Co (HDDC), lawyers for Strategic African Securities (SAS) and Togbe Afede XIV, has reacted to a recent publication in this medium headlined “Scandal Hits SSNIT”, precipitated by an Alliance for Accountable Governance (AFAG) press conference which depicted its clients in bad light.
“We are writing in response to the issues raised at AFAG’s press conference of 13/03/2012. First, we want to state categorically that Strategic African Securities (SAS) and its associates acted in a professional manner and in the best interest of our client, at all times while advising on the TTB/ECOBANK merger. In addition, we did our work in a most transparent manner, and there was no conflict of interest whatsoever. Indeed, following opposition by some pressure groups to the merger, the Bank of Ghana appointed a committee, which invited all interested parties to make representations.”
Reacting to another issue raised in the publication which talked about PriceWaterHouse (PWC)’s valuation of GH¢14/share, HDDC said SAS was not aware of any valuation carried out by PWC, and, for that matter, the GH¢14 referred to by AFAG. It said SSNIT never gave PWC a mandate to value the shares of TTB.
Also commenting on an offer by the Swiss Investment Bank and Rand Bank of South Africa, it noted that SAS was not aware of any such offers. “Our mandate was specific – to advice SSNIT on the ECOBANK/TTB merger. TTB had very well-informed international shareholders who were presented on its board. They would have brought this to our attention if indeed there was an offer.”
On the SAS valuation, it stated that the company adopted universally recognized methodologies in the valuation of TTB and “we got the best possible price for our client, which is GH¢12.62/share. The total valuation of GH¢220.85 million compares most favourably with the GH¢150 million market valuation of SG-SSB Bank, which made GH¢23 million in 2011, same as AFAG quoted for TTB.”
Concerning the dissolution of TTB Board by Togbe Afede, it mentioned that Togbe Afede could not have dissolved the board because he was not a member of the company and therefore did not cause any loss to the tune of GH¢112 million, nor pocket GH¢179 million.
“As pointed out earlier, the GH¢14/share valuation was just the imagination of AFAG. The difference between AFAG’s imaginary valuation and the GH¢12.62/share TTB was sold at, is GH¢1.38.
“TTB had 17.5 million shares outstanding. Given AFAG’s imaginary valuation, the so-called loss would have been GH¢24.15 million and not GH¢112 million or GH¢179 million.
On the World Trade Centre issue, it said it was erroneous to suggest that SSNIT gave Togbe Afede an ultra modern building to manage, “with the right to lease the other multiple offices to any other agency.
“Strategic Initiatives Limited (SIL), an associated company of SAS, acquired the sole franchise to operate a World Trade Centre (WTC) in Ghana to promote international trade and investment and to enhance the economic development of the country. SIL and SSNIT should be lauded for collaborating to establish the WTC in Accra and eventually bringing the property to the best possible commercial use. SAS is a paying tenant and not simply “comfortably occupying the last floor.”
By Samuel Boadi
