Stimulus acquires 50% of Neo Paints

STIMULUS Investments has acquired 50% shares in Neo Paints Holdings. Stimulus managing director Monica Geingos said in a note on the Namibian Stock Exchange that Stimulus has acquired 50% of the total issued ordinary share capital of the business and the transaction value represents about 14% of the current market value of the Stimulus portfolio.

“The transaction involved the buyout of all the previous shareholders and was syndicated with another Namibian private equity fund that owns the balance of the 50% issued shares in the business. Through this transaction Neo Paints will continue to remain a 100% Namibian owned company but with added broad-based empowerment credentials, Geingos said.

Neo Paints was founded and established in 1953 under the name Neo Paints Factory and currently employs 116 staff.

Neo Paints has three subsidiaries, namely Neo Paints Factory, Neo Paints Financing and Neo Paints Property Investments, the latter being the property holding entity.

“The business trades with a range of over 80 of its own product lines in the decorative paints market but is also the sole distributor of Sigma Paints industrial paint products. At present, the business operates from two locations, the main factory in Windhoek and distribution centre in Walvis Bay,” Geingos said.

She said the transaction has the potential to enhance the value of the Stimulus portfolio and increase its dividend-generating capacity.

“The economic outlook for the business remains favourable with expected continued growth in the general economy and construction industry in particular, driven by residential, public sector and other commercial property developments,” said Geingos.