Competition Authority has received a merger notification for the proposed acquisition of 100% shares in Kwena Concrete Products by Steelbase, from Botswana Development Corporation Limited (BDC).
The acquiring enterprise, Steelbase, is a Botswana based manufacturer, stockist and marketer of different types of steel roofing solutions such as plate, sheet and structured steel across Botswana. The products offered include IBR roofing sheets, pre-painted coils and concealed fix roofing. The directors of Steelbase are Najmuddin Kader; Nabeel Kader; and Faheem Kader.
The primary target enterprise, KCP, manufactures and sells concrete landscaping, building and infrastructural products such as pavers, bricks, and kerbstones across Botswana. KCP is controlled by BDC, a state owned enterprise that was established in 1970 to be Botswana’s main agency for commercial and industrial development.
BDC, wholly owned by the Government of Botswana, is a development finance institution founded to promote and facilitate the development of industrial, commercial, and agricultural enterprises within the framework of the Government of Botswana's plan for economic development. Under the leadership of Mr. Bashi Gaetsaloe, BDC turned around its fortunes after it implemented the Transformation programme which begun in 2014, shortly after Mr. Gaetsaloe was appointed the managing director.
Under the Transformation Programme, BDC returned to profitability after previous historic loss making position. Part of the Transformation Programme initiatives included revision of all major processes to reflect industry best practise; revision of risk management and governance policies; revision of legal agreements; deployment of a new organisational structure and right-sized the organisation; and, recruitment of new skills and capabilities, including the key roles of Chief Risk, Chief Operations and Chief Audit.
The Transformation Programme also focused on addressing key issues of restructuring BDC Group’s portfolio and balance sheet. In its 2015 annual report, the group says it has successfully completed Wave 1a of their divestment strategy and has commenced Wave 1b and Wave 2 of this strategy. BDC said that the strategy has not only raised cash for the Corporation, but has also empowered Batswana as most of these businesses ended up in the hands of local citizens.
The Corporation has since divested from five investments in the hospitality, manufacturing and financial services sectors. Divestments made in the hospitality sector were in Cumberland Hotel, Khawa Lodge, and Toro Lodge. The divestment in the manufacturing sector was in Golden Fruit 97(Pty) Ltd. The Corporation also divested from Metropolitan Life Botswana (Pty) Ltd.
The Kwena Product and Steelbase merger notification comes hot on the heels of the recent merger approval of disposal of all the manufacturing assets of Can Manufacturers to Nampak Products Ltd and a yet to be formed Special Purpose Vehicle (“Newco”), which will be jointly controlled by Botswana Development Corporation and Nampak Limited.
Other than disinvestments, BDC has been seeking a P1 billion guarantee from the government to fund its new investments. The guarantee is for the P850 million loan already approved by the African Development Bank and another P150 million, which it plans to raise through a local bond. When making its case for the guarantee, BDC said it intends to inject P45 million in Milk Africa, P200 million on Baisago University expansion, P250 million to fund Letshego’s regional expansion, P270 million to be pumped in private estate in Francistown, P30 million for a paper production company and P280 million to expand the automotive plant.
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.
The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.
In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.
Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.
China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.
Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.
On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.
According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.
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.
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.