Govt can't block Erindi sale
The prospective buyer of Erindi Game Reserve has pointed out that all necessary regulatory approvals for the sale had been obtained, with only a decision by the Competition Commission still pending.
The prospective buyer of Erindi Private Game Reserve has hit back at the government, saying all relevant approvals for the sale had been obtained from the relevant ministries.
According to a press release issued on behalf of 87-year-old Mexican billionaire Alberto Baillères, who aims to buy the 71 000-hectare game reserve through the company Rembo Ltd, the only decision outstanding is approval by the Namibian Competition Commission (NaCC).
Baillères recently announced that a sales agreement was being finalised with the owners of Erindi, through which the BAL Group would acquire it.
Prime Minister Saara Kuugongelwa-Amadhila this week said that the government had not given the owners of Erindi authorisation to sell the game reserve to foreigners and had the right to block the purchase.
According to the buyer's statement it is correct that under current legislation, a waiver needs to be obtained before the property can be sold to a foreigner or a Namibian.
“However, this waiver was duly obtained from the land reform minister and the sale of Erindi to Rembo Ltd was given consent by the land reform minister in terms of the Agricultural (Commercial) Land Reform Act, without any conditions,” it stated.
Furthermore, the trade ministry under the Foreign Investment Act of 1990 had issued a Certificate of Status Investment, approving Baillères as an investor, according to the statement.
“The only outstanding regulatory aspect is approval by the NaCC, which investigates whether mergers or acquisitions stifle competition or create undue market dominance.”
It said the merger filing in respect of the Erindi transaction was submitted jointly by the current owners of Erindi and Rembo Ltd, the special purpose vehicle created for this transaction, with the NaCC during May 2019.
According to the statement Baillères has identified Erindi as “a significant philanthropic investment”.
“One of the major factors in his decision to buy the game reserve is that Namibian law allows him to acquire 100% of the shares in the companies that together make up Erindi. This is the best way for reasons of sustainability, management and control,” the statement reads.
Baillères complied in full with each and every regulatory approval required under Namibian law, it was stressed in the statement.
“He has made it clear from the outset that he will only complete the purchase of Erindi if all legal requirements are in place and if he and the investment he intends to make is welcomed by Namibia.”
Kuugongelwa-Amadhila this week made it clear that the government was not selling Erindi to anyone, as the game reserve is not owned by the government.
She said the buying and selling of commercial land is regulated under an act of parliament (Agricultural Land Reform Act of 1995).
She pointed out that the government made an attempt last year to amend the law to repeal the provision that allows the sale of land to foreigners. The law has not been amended yet to prohibit such transactions.
However, she pointed out that the sale of land by a private person in Namibia can only be done after the government has decided not to exercise its right to purchase the land.
“Even in the case where government is not in a position to buy the land, government is still empowered under law to authorise the sale of land to a foreigner,” the prime minister stated.
ELLANIE SMIT
According to a press release issued on behalf of 87-year-old Mexican billionaire Alberto Baillères, who aims to buy the 71 000-hectare game reserve through the company Rembo Ltd, the only decision outstanding is approval by the Namibian Competition Commission (NaCC).
Baillères recently announced that a sales agreement was being finalised with the owners of Erindi, through which the BAL Group would acquire it.
Prime Minister Saara Kuugongelwa-Amadhila this week said that the government had not given the owners of Erindi authorisation to sell the game reserve to foreigners and had the right to block the purchase.
According to the buyer's statement it is correct that under current legislation, a waiver needs to be obtained before the property can be sold to a foreigner or a Namibian.
“However, this waiver was duly obtained from the land reform minister and the sale of Erindi to Rembo Ltd was given consent by the land reform minister in terms of the Agricultural (Commercial) Land Reform Act, without any conditions,” it stated.
Furthermore, the trade ministry under the Foreign Investment Act of 1990 had issued a Certificate of Status Investment, approving Baillères as an investor, according to the statement.
“The only outstanding regulatory aspect is approval by the NaCC, which investigates whether mergers or acquisitions stifle competition or create undue market dominance.”
It said the merger filing in respect of the Erindi transaction was submitted jointly by the current owners of Erindi and Rembo Ltd, the special purpose vehicle created for this transaction, with the NaCC during May 2019.
According to the statement Baillères has identified Erindi as “a significant philanthropic investment”.
“One of the major factors in his decision to buy the game reserve is that Namibian law allows him to acquire 100% of the shares in the companies that together make up Erindi. This is the best way for reasons of sustainability, management and control,” the statement reads.
Baillères complied in full with each and every regulatory approval required under Namibian law, it was stressed in the statement.
“He has made it clear from the outset that he will only complete the purchase of Erindi if all legal requirements are in place and if he and the investment he intends to make is welcomed by Namibia.”
Kuugongelwa-Amadhila this week made it clear that the government was not selling Erindi to anyone, as the game reserve is not owned by the government.
She said the buying and selling of commercial land is regulated under an act of parliament (Agricultural Land Reform Act of 1995).
She pointed out that the government made an attempt last year to amend the law to repeal the provision that allows the sale of land to foreigners. The law has not been amended yet to prohibit such transactions.
However, she pointed out that the sale of land by a private person in Namibia can only be done after the government has decided not to exercise its right to purchase the land.
“Even in the case where government is not in a position to buy the land, government is still empowered under law to authorise the sale of land to a foreigner,” the prime minister stated.
ELLANIE SMIT
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