Despite a revenue increase of 10%, Bidvest Namibia’s decreased by 10%, as the group faces the negative impact of fish price regulations in the Democratic Republic of Congo, and an oversupply of fish in its traditional horse mackerel markets, most notably Nigeria. The group’s results were further impacted by the strict fish import restrictions and lower average selling price in US dollar for horse mackerel. Bidvest Namibia’s fishing operations contributed 81% of the group’s trading profit of N$245.7 million.
Bidvest Namibia Fisheries Managing Director, Jan Arnold, gave an overview of the fishing division’s performance citing the uncertainty regarding the allocation of horse mackerel quotas by the Ministry of Fisheries and Marine Resources, and the import restrictions in Nigeria, as the major setbacks Namsov had to ride out. “It was the sad story of the year gone by” he said. Arnold added that the fishing operations were not quite prepared for the 25% import cap imposed by Nigeria, with a meagre 250,000 tons out of an earmarked 1.2 million tons making it to the Nigerian market as well as 150,000 tons for the Democratic Republic of Congo. Speaking on the local quota allocations, Arnold said that the fishing industry hinges on dependability adding, “we were kicked where it hurt.” According to Arnold, Bidvest has been engaging with the ministry to seek a favourable outcome.
As a result of the substantially reduced quota allocations, Bidvest Fisheries has had to tie up two fishing vessels, with the crews being sent home. Bidvest Fisheries expects the fishing operations to continue to perform poorly for the next six-month period. Positive news came from Namsea, another Bidvest Namibia Fishing subsidiary, which was expected to perform well with Arnold reporting that the pilchard resource looks healthy. According to Arnold, the pilchard market was expected to perform well with an upside expected.
Twafika, a monk and hake operation, also performed satisfactorily but was not a big contributor while the Angolan fishing operation, Comet/Pesca Fresca showed huge potential. Bidvest Fisheries had as a consequence acquired new vessels for their Angolan operations which the group deems an attractive prospect with positive future expectations. Arnold said initiatives related to the harvesting of oysters yielded good indications for improved performance in future. Despite the oyster operation under-performing in the most recent financial year, Bidvest Fisheries employs an open farming approach to its oyster business in Lüderitz, expecting this business to turn profitable soon. According to Arnold, the Bidvest’s fishing operations, in particular Namsov, hold strong cash reserves to ease operations up until January 2015.
The shareholders of Bidvest Namibia are informed that on 10 April 2019, Bidvest Namibia received a Binding Conditional Offer (“”Offer”) from Bidvest Group, the majority shareholder of Bidvest Namibia, to acquire all of the shares held by the minority shareholders in Bidvest Namibia (“Bidvest Namibia Shareholders”) at 10.50 per share, which Offer will be subject to inter alia the successful passing of the De-listing Resolution as set out in the conditions, together with the take-over statement and Offer amounts to a takeover scheme.
Shareholders of Bidvest Namibia are informed that Bidvest Namibia has received a intended binding offer from Bidvest Group, the majority shareholder of Bidvest Namibia, in terms of which Bidvest Group intends to make an offer to acquire all of the outstanding ordinary shares in Bidvest Namibia not currently held by Bidvest Group, by way of a take-over scheme. The amount offered in terms of the Intended Conditional Offer is a cash only consideration of N$10.50 per Offer Share, subject to the successful passing of the De-listing Resolution as set out in paragraph 2 below.
Investors are referred to the NENS announcement released on August 31, 2018 relating to the finalization announcement of the sale by Bidvest Namibia of the entire issued capital of Bidvest Fisheries Holdings to Tuncar Fisheries. The results of Bidfish have been presented as discontinued.
Further to the cautionary announcement dated December 12, 2018, shareholders are advised that the Company has entered into discussions, which if successfully concluded, may have a
material effect on the price of the Company´s securities. Accordingly, shareholders are advised to continue to exercise caution when dealing in Bidvest Namibia´s securities until a final announcement is made.