Bidvest Faces difficult conditions in the Fishing Sector

Posted: 2 Sep 2014

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.







Notice Board

Sens Timing of implemention of Bidvest Group Offer

Shareholders of Bidvest Namibia are referred to the circular to Bidvest Namibia Shareholders containing details of a conditional take-over by the Bidvest Group to Bidvest Namibia Shareholders, to acquire all remaining Bidvest shares not owned by the Bidvest Group by way of a take-over scheme (‘offer’). Subsequent to the acceptance of the Delisting Resolution by the requisite majority, the offer has been declared unconditional by the Bidvest Group  and has become effective, irrevocable an open for acceptance during the Acceptance Period.

Sens Results of General Meeting: Declaration of withdrawl

Further to the cautionary announcement released on the Stock Exchange News Service (“NENS”) of the Namibian Stock Exchange (“NSX”) on 12 December 2018, the subsequent renewal of the Cautionary Announcement released on NENS on 23 January 2019 and 1 March 2019 and the announcements released on NENS on 11 April 2019 and 25 April 2019.  Shareholders are hereby advised that the requisite majority of Bidvest Namibia shareholders eligible to vote, have approved the delisting. In terms of this passed resolution, the listing of all the Bidvest Namibia Shares of
Bidvest Namibia on the Main Board of the NSX be suspended and terminated with effect from 11 June 2019 or at such times and such dates as will be approved in accordance with the Bank of Namibia and by the NSX

Sens E&Y – Fair and Reasonable Opinion Supplementary Information

Further to the cautionary announcement released on the Stock Exchange News Service of the Namibian Stock Exchange on 25 April 2019 relating to the circular to shareholders, supplementary information relating to the sum of the parts valuation, culminating in the fair and reasonable valuation range of N$8.95 to N$9.45 as per the E&Y Fair and Reasonable opinion included in the circular, is available on the this website.

Sens Circular Notice to Shareholders

Further to the cautionary announcement released on the Stock Exchange News Service of the Namibian Stock Exchange on 12 December 2018, the subsequent renewal of the Cautionary Announcement released on NENS on 23 January 2019 and 1 March 2019 and the announcement released on NENS on 11 April 2019. A combined circular has been issued today by Bidvest Namibia Limited and the Bidvest Group to a conditional Take-over offer in terms of sections 320 – 327 of the Companies Act….





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