Description of Activities

The Commission resolved to approve with conditions the acquisition by the Development Bank of Namibia (DBN) acquiring class “A” and “B” Preference Shares in African Pride Hospitality (Pty) Ltd (APH). 

The primary acquiring undertaking, DBN is a creature of statute established as a corporate body in terms of the Development Bank of Namibia Act 8 of 2002 to contribute to the economic growth and social development of Namibia by providing financing in support of key development activities and to provide for matters incidental to it.

The primary target undertaking, APH is a company incorporated in Namibia with an interest in the property-holding industry. APH is primarily involved in the hospitality industry and trade as Hilton Garden Inn Hotel.

The Secretariat defined the relevant product market as the market for the  provision of development finance; and the provision of hotel accommodation with star grading 3 to 5.

Merger Determination

The Commission found the proposed transaction unlikely to result in the prevention or substantial lessening of competition should the Acquiring Undertaking retain the acquired preference shares, after the repayment of the loan by the Target Undertaking. Thus, the Commission approved the merger subject to conditions to ensure that the objectives and intentions of the Restructuring Agreements, as submitted to the Commission, are maintained and the Acquiring undertaking maintains its statutory mandate as contemplated in the Development Bank of Namibia Act 8 of 2002.

However, as stated under section 50 of the Act, this approval does not relieve parties from complying with any other mandatory statutory approvals that any of the parties to this merger must comply with under Namibian Laws.