BDC puts LCW up for partial, full sale
Mbongeni Mguni | Monday October 26, 2026 06:00
Publicly available documents shared by the càorporation this week indicate that the BDC estimates its equity value in LCW to be P55 million and is not willing to accept offers below this level.
“Interested parties must clearly state the consideration they are prepared to pay for BDC’s 100% shareholding and confirm the basis and value of their offer. “Any offers below the indicative valuation shall not be considered,” read notes to the call for Expressions of Interest.
The BDC’s valuation of its LCW stake includes two properties in Lobatse and one in Mmamabula, Plant, plant machinery and equipment that includes the company’s brick and clay-product manufacturing plant, clay reserves and mining rights as well as all inventory on the ground at the time of the disposal.
The corporation is seeking to finalise the takeover of LCW within the next six months.
Under its new strategy, the BDC has been accelerating its asset recycling programme, releasing capital from underperforming and non-core investments for redeployment into more productive opportunities.
In the year to June 2026, the initiative unlocked P614 million in capital available to be redirected into other strategic sectors. The corporation also disbursed P855 million into its investment pipeline during the financial year, representing nearly 20 times the previous year's level and also a historic high.
“The P855 million deployed and P614 million unlocked demonstrate that we are moving decisively from recovery to execution, ensuring that our resources are directed towards investments capable of delivering sustainable commercial returns and meaningful economic impact,' BDC MD, Oteng Keabetswe said in a commentary on the recent results.
The new strategy is seen as key at the corporation, which earlier this year revealed that its asset book of about P6 billion is yielding about P50 million in predictable cash, or a conversion rate of under one percent.
The numbers essentially mean that the corporation’s assets are underperforming, or not yielding returns that can match the level of investment and risk taken.
Whilst LCW has long been one of the industries anchoring Lobatse, the company has run into difficulties over the years requiring the BDC to invest hundreds of millions of pula in both capital and operating expenditure.
In 2017, saddled by operational challenges, including ageing plant and equipment, production inefficiencies and rising input costs, LCW suffered financial stress, failed to pay close to 500 employees and closed its doors. At that time, the company retrenched workers and remained with only 21 who handled care and maintenance of the plant, administration as well as financial issues.
The company reopened in 2024 backed by a BDC bail-out, with the new operations featuring upgraded manufacturing equipment, improved energy efficiencies and enhanced kiln technology.
The LCW transaction comes as one of the company’s debtors, Bokhamo Pty Ltd, sues to place it under provisional liquidation due to an unpaid debt of more than P600,000. Documents before the High Court indicate that LCW had engaged Bokhamo to haul clay from Mmamabula to Lobatse earlier this year.
In their papers before the Gaborone High Court, Bokhamo’s lawyers allege that whilst LCW paid P300,000 of the initial P906,300 invoice, the balance went unpaid.
In responding papers, LCW says the petition for provisional liquidation is frivolous and improperly before court.
BusinessWeek is informed that the two parties have been in talks to resolve the matter amicably.