For the financial period of 2014-2015, Bidvest Namibia has delivered softer trading results due to challenges in both the Fishing and the Food and Distribution divisions. Revenue declined by 4,6% to N$3,5 billion. Trading profit of N$415,6 million was achieved, but is lower than last year’s result of N$85,7 million (17,1%). The main contributor to trading profit remains the Fishing division (83%) despite a decline of 15,1% in profit. The decline was a result of a smaller allocation of horse-mackerel quota in the second allocation of the 2014 calendar year. The exchange rate helped significantly to offset the impact of lower volumes on revenue.
Freight and Logistics performed poorer than expected showing a 18,5% decrease in trading profit, largely due a lack of any major oil and gas projects. Monjasa, the new fuel bunkering business of Manica, performed ahead of expectations. Food and Distribution had disappointing results with trading profit declining by 61,1% to N$9,6 million. Caterplus recorded a significant turnaround but the Taeuber & Corssen (T&C) business declined, mainly as a result of Namib Poultry Industries terminating its distribution agreement with T&C. This action is currently being challenged legally. In addition, certain principals were unable to supply goods on demand, resulting in supply chain shortages.
The Commercial and Industrial Products and Services performed well showing a 21,1% increase in trading profit. Steiner more than doubled its revenue and had a positive influence on the divisional result. Cash generated by operations increased by 28,2% creating further capacity for expansion.
The Fishing division continues to face challenges regarding accessing sufficient horse-mackerel quota to fully utilise its catching capacity. Pressure on prices and availability of horse-mackerel quotas will continue to affect this division. Excess capital in the business is being reduced and the overall activities scaled back. Subsequent to year-end, the Glenryck trademark was purchased which will present opportunities to market additional products. Management have concluded the initial feasibility study to convert the current horse mackerel finding operation to a shore based processing facility.
The board has resolved to proceed with environmental impact assessments and civil and detailed design work. First phase construction will include a jetty at the UFE premises. Strong results are expected from our commercial entities. Freight and Logistics will continue to seek project activity opportunities. The Food and Distribution division is working hard to remedy the poor performance of the past year and will continue its efforts to find innovative ways to replace the loss of the local poultry distribution. Subsequent to year-end, the group acquired Novel Motor Company, an established motor dealership which is the main representative of Ford and the sole representative of Jaguar Land Rover, Volvo and Mazda vehicles in Namibia.
In addition, Bidvest Namibia has obtained a 49% share in Namibia Bureau de Change, further diversifying the activities of the group. Despite disappointing results in most divisions, the Bidvest Namibia team remains positive, motivated and dedicated to finding solutions for the challenges that are being encountered.”
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.