[Namibia] Stimulus Investment Ltd restructures Namibia Media Holdings to include entities in property and publishing

Namibia based equity investment company STIMULUS Investment Limited that holds 100 per cent shareholding of Namibia Media Holdings has announced a restructuring of the media company to include three entities that will cover publishing, property and printing.

As part of the changes, Stimulus will dispose of 20 per cent of the publishing and printing operations to key management members of the group as a means of management buy-in.

“The restructuring will add value for the group through a more focused approach aimed at enhancing market share and operational efficiencies, as well as aligning the interests of key members of management with that of Stimulus,” said Stimulus director, Josephat Mwatotele.

According to analysts such deals are common, especially if key staff are to be retained. “Well, the decision taken by Stimulus Investment Limited to sell management a holding in the company is not unusual. The idea would be to align management and shareholder interest more directly,” said Relf Lumley, portfolio manager at Capricorn Asset Management.

Lumley said the management buy-in is also a good way to retain key management staff.“This could ultimately make the business more profitable. Stimulus Investment Limited would receive cash from the sale, depending on the agreed price, and the remainder of the holdings' growth potential could increase.”

Another Windhoek-based analyst, Ngoni Bopoto, said management buy-in is always a good thing because it aligns management and shareholders interest. “The splitting of the various divisions is interesting. Note that Stimulus will now own the bulk of land on that block. They already own the land Joe's Beerhouse is on,” he said. 

FNB Namibia said last week that it has successfully concluded negotiations to acquire 100 per cent of Pointbreak and EBank, subject to all necessary regulatory approvals.

www.nmh.com.na