Bidvest Namibia paid N$75 million to minority shareholders in its fishing unit firms, Namsov Properties and United Fishing (Bidfish), before it sold its fishing business to Tunacor for an undisclosed amount.
Bidvest Namibia through its subsidiary, Bidvest Namibia Property, acquired the remaining issued share capital of Namsov Industrial Properties (NamIP) and United Fishing Enterprises (UFE).
Bidvest Namibia held a 69.55 percent indirect shareholding in both NIP and UFE through its indirect subsidiary Namsov Fishing Enterprises, whose holding has been transferred to Bidvest Namibia Property.
The remaining 30.45 percent shareholding in both NIP and UFE was indirectly held by a number of entities through their shareholding in Namsov. These entities were Khomas Fishing and Packaging (4.975 percent), Henties Bay People Fishing (5.525 percent), Prestige Fisheries Holdings (4.975 percent) and Namsov Community Trust (10 percent).
“An offer based on a professional market valuation conducted for both NIP and UFE during March 2018, was made for the remaining 30.45 percent and was accepted by the shareholders. The underlying effect of the transaction is that Bidvest Namibia increased its effective shareholding in NIP and UFE from 69.55 percent to 100 percent,” Bidvest said in a statement.
The transaction was done in order to conclude the disposal of the entire issued share capital of Bidfish to Tunacor.
The deal, however, excluded Bidfish’s businesses in Angola and Mozambique, certain vessels, plant and equipment.
Tunacor and its subsidiaries are primarily engaged in fishing and fish processing of hake and monk species.
Bidvest decided to disinvest from the fishing business partly due to the decision by the fisheries minister, Bernhard Esau, to reduce the company’s fishing quotas in recent years.
The writing was on the wall for the Namibia Stock Exchange listed company after Esau told Parliament last month that listed firms will no longer be awarded quotas.
Esau said this measure was taken in line with the country’s Marine Resources Act, 2000, which requires the minister to determine whether or not an applicant for a fishing right, or fishing quota is a Namibian citizen.
He added that the ban on listed firms was because government could not easily monitor whether these publicly traded companies were owned by Namibian citizens (as required by law) as shares can be bought and sold on a regular basis to anyone in the market.