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Letlole La Rona to acquire Watershed Piazza

Botswana’s home grown loan stock company, Letlole la Rona (LLR) continues to grow and make strides in one of their priority sectors – the retail space property market.

The Botswana Stock Exchange (BSE) listed company is acquiring Water Shed Piazza, a shopping mall in Mahalapye from Jus Posh Investments. The process is nearing completion, Letlole La Rona shared in a circular dated 22 January 2018. The purpose of the Circular which was issued in compliance with Section 9.25 of the BSE Listing requirements   explains to the shareholders of Letlole la Rona and all affected parties the full details of this Acquisition Transaction.

Letlole La Rona entered into an agreement with Jus Posh Investments (Proprietary) Limited to acquire Lot 29052, Mahalapye from the former, an  occurrence that was announced by the LLR on the late last year ,7th December. “The acquisition of the Property includes all land, buildings and improvements comprising of mainly a fully developed retail center known as Watershed Piazza,” reads the statement.

Letlole La Rona which is owned by several investment entities including Botswana Development Corporation (BDC) and First National Bank (FNBB) owns a number of properties in Botswana, with investment highly skewed in favor of industrial property, followed by hotel space, commercial office space, retail and residential space. The circular explains that for the purposes of expanding its market capitalization, the BSE listed company identified Water Shed Piazza which consists of mainly the retail space.

According to Letlole La Rona, Watershed Piazza is a potentially favorable investment opportunity to grow its property portfolio and to enhance returns on the Company’s equity. “This retail property will enhance LLR’s property value and diversify the portfolio in line with the strategic objectives of the Company. It also provides geographical spread opportunities,” observes the statement.

The transaction is expected to be completed around March 2018 upon certain regulatory approvals as well as other customary conditions precedent, which include Letlole La Rona conducting a due diligence on the property, and being satisfied with the outcome thereof as well as other approvals from relevant authorities like Botswana Stock Exchange & Competition Authority. The circular reveals that a total sum of BWP 149,000,000.00 is considered to be paid to Jus Posh Investment a company whole owned Property business man Seloma Tiro.  

Letlole La Rona says the transaction worth was determined based on a negotiated sale price which was guided by an independent valuation undertaken by Jus Posh and another independent valuation undertaken by LLR. The company also shared that this BWP 149,000,000.00 presents 22% of value of the total net assets of LLR as of 30 July 2017. LLR says the transaction will be wholly funded by debt, hence a significant increase in finance costs.   

Recently Letlole La Rona acquired Red Square, a residential property sitting on a 1.84 hectare piece of land in a gated estate located at the Corner of Nyerere Drive and Nelson Mandela Drive in Extension 11 Gaborone. LLR boast of the fact that the property is situated at the heart of the City and in one of the most sought after locations in Central Gaborone. Its proximity to major businesses in Gaborone, including financial institutions, parastatals, Government Ministries, the High Court, the Industrial Court, and SADC Head Office makes it a prime location for individuals with business interests around the city centre and the new CBD.

The property was acquired at the sum of P42 million and has helped in diversifying LLRL's property portfolio, propping up exposure to residential property from naught to 6%. The company also closed a deal on one-third stake in a well located and thriving shopping centre in Francistown valued at approximately P105 million. The property is located close to the Central Business District and benefits a lot from foot traffic needing access to the taxi rank. The retail centre is poised for growth, with rental for the anchor tenant having recently increased. This brings to two, the total number of strategic acquisitions by LLR in a space of five months.

Letlole La Rona Limited  is a variable rate loan stock company   incorporated in July 2010 and listed on Botswana  Stock Exchange on the 15th of June 2011 at a price of P1.50 per share and a market capitalization of P420 million. Latest financial figures from the company indicates that for the 2016/17 trading year the company‘s property portfolio grew by 10% compared to the previous year, P710.1 million to P778 million. Letlole La Rona recorded a profit before tax of P88.9 million and distributed dividends of P37.5 million for that financial year. From the P420 million market capitalization at initial listing the company‘s market capitalization stands at P652.4 million, as of the latest financial result.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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Global CEOs Back Plan to Unlock $3.4 Trillion Potential of Africa Free Trade Area

23rd January 2023

African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).

AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.

The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.

The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.

To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”

Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.

The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.

“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.

“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.

The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.

About the World Economic Forum Annual Meeting 2023

The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,

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