Botswana Development Corporation (BDC), the state-owned investment arm, is looking to exit its investment in Mashatu Nature Reserve following a bid for its stake by a newly established holding vehicle.
In a recent merger notice, Competition and Consumer Authority said it has received a merger notification for the proposed acquisition of 30% of the issued shares in Mashatu Nature Reserve Proprietary Limited (MNR) by Ager Holdings Proprietary Limited.
The issued share capital of MNR is 70% held by Mashatu Investments Proprietary Limited while BDC holds the remaining 30%.
On the other hand, Ager Holdings is a newly incorporated company in accordance with the Laws of Botswana and is intended to function solely as a holding company. It is wholly owned by Pula Properties Limited, a company incorporated under the laws of Guernsey in La Grande Rue, St Martins, Guernsey, according to information supplied by regulators.
“According to section 50 (3) of the Act, “any person, including a third party not a party to the proposed merger, may voluntarily submit to the investigator or the Authority any document, affidavit, statement or other relevant information in respect of a proposed merger.”
“The Authority therefore seeks any stakeholder views for or against the proposed merger, which may be sent within 10 days from the date of this publication…,” the Competition and Consumer Authority said.
Mashatu is a private company incorporated in Botswana and its principal place of business is Mashatu Game Reserve, located in the North-East Tuli Block, Lentswelemoriti, Botswana. It provides luxury game safari experiences and accommodation in the Northern Tuli Game Reserve (Tuli Block), northeastern Botswana.
Recently, the Minister of Trade and Entrepreneurship, Tiroeaone Ntsima told Parliament that BDC participates in the hospitality sector as part of its mandate to promote economic diversification, tourism development and sustainable economic growth.
Ntsima said the Corporation’s hospitality portfolio comprises both wholly-owned and strategic equity investments across hotel, tourism and hospitality assets, which are managed on sound commercial principles while supporting broader national development objectives.
“As an active investment institution, BDC continuously monitors the financial and operational performance of its hospitality investments and regularly reviews the strategic fit of each asset within its portfolio,” Ntsima said in a response to a question from Selibe Phikwe East Member of Parliament, Kgoberego Nkawana.
“This enables the Corporation to strengthen investments that demonstrate long-term value, implement appropriate turnaround interventions where necessary, and responsibly divest from investments that have reached maturity or no longer align with its investment objectives,” he added.
Nkawana has asked the minister to apprise Parliament on the business viability of all hotels run by BDC and Cresta, and whether the Corporation has any plans to open new hotels.
BDC’s hospitality portfolio currently comprises four (4) strategic investments, namely Peermont Global Botswana, Mashatu Nature Reserve, Cresta Marakanelo Limited and Thakadu & Kwena Hotels.