The Namibian Competition Commission (NaCC) approved the Development Bank of Namibia’s acquisition of the Tona Amadhila’s Outapi Shopping Centre on 15 August.
Amadhila is prime minister, Saraa Kuugongwelwa Amadhila’s husband, who as The Namibian reported in 2021, had been in arrears on loans worth N$180 million from the development bank.
The commission approved the acquisition of the majority of members’ interest in the centre under the DBN’s business rescue programme.
The business rescue programme is a voluntary last-mile programme to prevent the liquidation of enterprises using independent expert business advisers and possible partial debt conversion into patient capital.
Amadhila’s companies Outapi Shopping Centre Pty Ltd and Tona Trade Holdings CC were the ones used to borrow the multimillion-dollar loans and he’s been strugling to service these.
The DBN is a statutory entity that provides financing for development activities. The target undertaking is a shopping centre offering mostly retail and office space.
According to the merger decision, the commission found the proposed transaction unlikely to result in any undertaking acquiring or strengthening a dominant position in the market, but does raise public interest concerns and could result in the prevention of or substantial reduction in competition.
“The merger was approved with conditions that the DBN sell its interest and leave the shopping centre after the loan is repaid,” NaCC spokesperson Dina //Gowases says.
Additionally, the DBN is not allowed to unfairly treat potential customers based on its involvement with the shopping centre.
Amadhila runs a number of businesses in northern Namibia, ranging from construction, property development and agriculture to hospitality.
– email: bottomline@namibian.com.na
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