Savanna Beef abattoir soon a reality
N$200m raised so far
A new subsidiary, Savanna Beef Operations, has been incorporated and registered under parent company SBPL.
Savanna Beef Processors Limited’s (SBPL) planned export abattoir near Okahandja is taking shape, and earth-moving work by a contracted construction company has already started.
An amount of N$479 million is required for the project, and around N$200 million has already been raised. Shares have been sold, which has already generated a lot of interest income.
A new subsidiary, Savanna Beef Operations, was incorporated and registered under parent company SBPL, with 100% ownership.
"This business structure was one of the requirements of one of the financiers of the project," SBPL chairperson Mecki Schneider explained in a newsletter.
The land division has also been finalised and an exemption certificate has been issued, the newsletter read.
Land totalling 25 hectares on Teufelsschlucht farm was transferred to Savanna Beef Operations, it added.
Operations manager Helgo Horsthemke was appointed to coordinate the design and construction phase on behalf of SBPL, as well as manage the future operational aspects of the facility.
"This significantly reduced the pressure on the engineering committees," Schneider said.
Securing equity
The detailed concept design phase has also been completed. Earthworks on site are underway and large areas have been prepared for construction. Connection and supply contracts for electricity and water have been signed with NamPower and NamWater. The first site for offices was rented from 1 December in Windhoek.
The authorised share capital of N$250 million was increased to N$300 million following an annual general meeting. This was done to secure further equity from foreign institutional investors, the company said.
For every 4 000 shares purchased, a shareholder/cattle producer receives a preferential slaughter allocation of one head of cattle per year with an additional price premium of 3%. This means around 48 000 cattle are ‘tied’ to the shareholders.
The slaughterhouse must have a total capacity of 50 000 cattle per year, the newsletter added.
Meanwhile, a three-person delegation visited Europe several weeks ago to evaluate market strategies for SBPL. An agreement was signed with an international meat trading agency for a marketing and distribution contract.
"The final draft of the document will be completed soon," Schneider said.
An amount of N$479 million is required for the project, and around N$200 million has already been raised. Shares have been sold, which has already generated a lot of interest income.
A new subsidiary, Savanna Beef Operations, was incorporated and registered under parent company SBPL, with 100% ownership.
"This business structure was one of the requirements of one of the financiers of the project," SBPL chairperson Mecki Schneider explained in a newsletter.
The land division has also been finalised and an exemption certificate has been issued, the newsletter read.
Land totalling 25 hectares on Teufelsschlucht farm was transferred to Savanna Beef Operations, it added.
Operations manager Helgo Horsthemke was appointed to coordinate the design and construction phase on behalf of SBPL, as well as manage the future operational aspects of the facility.
"This significantly reduced the pressure on the engineering committees," Schneider said.
Securing equity
The detailed concept design phase has also been completed. Earthworks on site are underway and large areas have been prepared for construction. Connection and supply contracts for electricity and water have been signed with NamPower and NamWater. The first site for offices was rented from 1 December in Windhoek.
The authorised share capital of N$250 million was increased to N$300 million following an annual general meeting. This was done to secure further equity from foreign institutional investors, the company said.
For every 4 000 shares purchased, a shareholder/cattle producer receives a preferential slaughter allocation of one head of cattle per year with an additional price premium of 3%. This means around 48 000 cattle are ‘tied’ to the shareholders.
The slaughterhouse must have a total capacity of 50 000 cattle per year, the newsletter added.
Meanwhile, a three-person delegation visited Europe several weeks ago to evaluate market strategies for SBPL. An agreement was signed with an international meat trading agency for a marketing and distribution contract.
"The final draft of the document will be completed soon," Schneider said.
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