NAP appeals blocked P20m Maun deal
Pauline Dikuelo | Monday October 17, 2022 06:00
The competition watchdog recently blocked NAP from finalising the P20 million deal saying the transaction raised 'competition issues' as NAP already has a robust retail presence in Maun. The CCA ruled that the proposed transaction is likely to result in a substantial lessening of competition due to the removal of a competitor in the form of the target enterprise.
The CCA said its assessment of the proposed deal had shown that competition concerns would arise in the rental retail space in Maun should NAP be allowed to conclude its transaction. Also, the assessment done by CCA found cross-shareholding between an upcoming retail centre in Maun called Delta Palms Mall and NAP. The cross-shareholding is through a common shareholder called Cash Bazaar Holdings, which holds 19.9% equity in NAP.
This week, officials at the Competition and Consumer Authority confirmed receiving an appeal of the matter by NAP.
"We are aware of their appeal but more information on that can be sought from NAP as the appellants," an official said.
Repeated efforts to source comment from NAP failed with officials not returning BusinessWeek's calls and inquiries.
NAP has 57 retail and industrial properties in Botswana last valued at about P1.4 billion and spread out from Gaborone to Kasane, Maun and Gantsi, Jwaneng and other parts of the country. The property investment group’s assets include well-known properties such as Riverwalk Mall and Kagiso Centre in Gaborone, Mafenyatlala Mall in Molepolole and Mokoro Centre in Maun.
In its 2020 Annual Report, NAP directors had told shareholders that the group had entered into an agreement with El Alamein Pty Ltd for the purchase of Tribal Lot 1299 in Maun, which is a 'well-located retail centre' currently collecting rentals under several leases with tenants.
CCA frequently faces appeals and challenges from aggrieved parties. The appeals are escalated to the Competition and Consumer Tribunal after which parties can go to the High Court.