6 January 2014

Namibia Breweries Takeover of Camelthorn Approved

THE Namibian Competition Commission has approved the takeover of micro brewer, Camelthorn Brewing, by Namibia Breweries Limited. The approval is without conditions, the Commission announced.

The Commission said the merger is not likely to give rise to anti-competitive concerns in view of the significance of NBL in the Namibian beer market.

The Commission said it also considered the fact that Camelthorn is currently facing financial difficulty, and based on the evaluation of it being determined a failing undertaking, it resolved to approve the merger without conditions.

Namibia Breweries is the biggest commercial beer company in Namibia, while Camelthorn is a micro brewer of organic craft beers including brands such as Weissbier, Light Weissbier, Helles, Gold, Red Ale and Sundowner.

In December, NBL announced on the Namibia Stock Exchange, that it had advised shareholders that negotiations were still in progress, which if successfully concluded, may have a material effect on the price of the company´s shares.

In December, it emerged that Camelthorn Brewing Company, has reached a debt settlement agreement with the Development Bank of Namibia over a N$10 million debt.

The loan capital that Camelthorn obtained from the DBN was N$10,1 million and accumulated interest until end May 2013 stood at N$3,9 million.

The DBN said in December it has reached an in-principle agreement with Camelthorn's shareholders for them to pay at least N$11 million. DBN will then write off the balance, which comprises of interest accrued.

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