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Acquisition of South African parent shifts control of Namibian construction filial

Acquisition of South African parent shifts control of Namibian construction filial

Control of NMC Construction, the parent of NMC Construction Namibia, has recently gone over to South African activist investor, Phila Jordan upon acquisition of 51% of the shareholding in the parent. In effect, Jordan now controls the Namibian filial in which the Hangala Group, through its SME contractor’s arm, holds a 30% interest.

Announcing the deal in Johannesburg, the South African company’s Managing Director, Shaun Webber said “In line with the groups commitment to continued transformation we are pleased to announce Mr Phila Jordan as the new Executive Chairman of the NMC Group. Mr Jordan’s 51% stake in NMC takes the total BEE ownership to 63%.”

“Mr Jordan comes with knowledge and experience in both the private and public sectors. His skill set will add a new dimension and energy to the business on all fronts. His support of the fundamental values of the NMC brand of trust, people growth, discipline and pride is encouraging, enabling us to continue to operate as a company that builds people who build relationships” Webber continued.

“The new capital investment and investor heralds a turning point for the business and we look forward to even more exciting developments ahead” he said.

“NMC is now ideally positioned for a broader strategic approach to focus on Public-Private Partnerships, Engineering Procurement and Construction as well as Design and Build. Our immediate focal points are to ensure profitability and liquidity, engagement with both public and private stakeholders and secure orderbook pipeline,” was Jordan’s first comment upon becoming Executive Chairman.

“As a multi-disciplinary construction company, the group has a national footprint with the potential to grow far larger than the existing business. This is due to its reputation, strong delivery brand and its positioning as a true home-grown, people centred South African construction business,” he added.

In light of the developments following the acquisition, the group has taken a strategic decision to relocate the operational head office. The Johannesburg office will serve as the new head office and the Cape Town office as the administrative base for the business, with all South African regional offices as well as the Windhoek office servicing their respective geographic areas.


 

 

About The Author

SADC Correspondent

SADC correspondents are independent contributors whose work covers regional issues of southern Africa outside the immediate Namibian ambit. Ed.

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.