Bolux Milling operates a maize and wheat milling plant in Ramotswa and Francistown
Seaboard Corporation, a New York Stock Exchange listed company has proposed to acquire 49% minority interest in Bolux Group (Pty) Ltd through its Bahamas registered company, Seaboard Botswana Holdings Ltd.
The Competition Authority has sought any stakeholder views for or against the proposed merger, which may be sent within 10 days from date of notice.
Seaboard Corporation prides itself as a unique company with a rich history dating back more than 90 years. Although the company has evolved over time through acquisitions, partnerships and internal growth, its roots are in grain and agriculturally derived products.
According to the company’s website, Seaboard Corporation employs more than 23,000 people worldwide at our subsidiaries and affiliates. They are currently ranked number 387 on the 2014 Fortune 500 list with net sales of approximately $6.67 billion annually. In 2011 Seaboard sales exceeded the $1.5 billion. Expectations are that its healthy balance sheet will help stabilise Bolux Group operations, industry experts say.
The Competition Authority, through its Director, Mergers and Monopolies, confirmed that it has received a merger notification between Bolux Group (Pty) Ltd and Seaboard Botswana Holdings Ltd. The proposed transaction involves Seaboard Botswana Holdings Ltd acquiring 49% minority interest in Bolux Group (Pty) Ltd.
“Seaboard Botswana Holdings Ltd is a company registered in the Bahamas which was established for the purpose of acquiring 49% minority interest in Bolux Group (Pty) Ltd. Seaboard Botswana Holdings Ltd is a wholly owned subsidiary of Seaboard Corporation, a US listed entity with investments globally, in the food processing grain trading sector.
Seaboard Corporation’s supply of grains in Botswana is limited to direct supplies to Bolux Group only, but they have in the past assisted some grocery retailers in Botswana with the purchase of Sorghum, though this was purely on an adhoc basis. Furthermore Seaboard Corporation supply large quanta of wheat to Pioneer Food Group, the holding company of Bokomo,” reads the merger notice from Competition Authority.
Bolux Group (Pty) Ltd is wholly owned by Corbis Bolux (Pty) Ltd, a South African company. Bolux Group is in the business of production of wheat flour, maize meal, pasta and bread in Botswana, with estimated market shares of 60% (wheat flour), 30% (maize meal) and 40% (pasta).
Bolux Group has evolved over the last ±30 years into a major player in Botswana’s agro-processing industry. The Group has diversified operations to include maize and wheat milling, pasta and biscuit manufacturing and bread manufacturing. Bolux Milling operates a maize and wheat milling plant in Ramotswa and Francistown in order to supply the domestic market with flour and maize products. The Bolux Group of Companies currently employs in excess of 600 Botswana citizens, making it one of the largest food manufacturers in Botswana.
The Competition Authority has called for stakeholders views for or against the proposed merger.
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.