Select Page

Competition Commission pegs stringent conditions to Rössing Uranium deal

Competition Commission pegs stringent conditions to Rössing Uranium deal

The CEO of the Namibian Competition Commission, Vitalis Ndalikokule, this week announced the approval of China National Uranium Corporation’ (CNUC) acquisition of Rössing Uranium mine.

Ndalikokule said the move was approved after finding that the transaction is unlikely to result in the prevention or substantial lessening of competition.

In order to safeguard employment, local procurement and maintain benefits currently derived from in terms of taxes and royalties, the Commission imposed conditions, that the mine shall have no merger specific retrenchments for 2 years, maintain a 95% local workforce (both worker and management levels), and the mine may not employ non-Namibians at management level for more than a two-year fixed term contract.

Additionally, the Commission imposed that the nine shall not implement any changes to its 30 July 2013 procurement policy which will have the effect of providing less favourable terms to local suppliers, until the expiry of the lifespan of the mine in order to benefit local SMEs for procurement of any services, goods or products below a value of N$250,000.

The Commission also added that the mine should procure a minimum 80% of any of the above services, goods or products from companies which are majority Namibian-owned and registered, and employ a minimum of 75% Namibians.

The deal with CNUC to acquire the entire issued share capital of Rio Tinto Overseas Holding Limited will give the Chinese company control over Rössing Uranium Limited. The deal is expected to be sealed this year.


 

About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys

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.