BDC Eyes Pasdec For Controlling Stake
The government’s investment arm, Botswana Development Corporation (BDC), aims to become the majority shareholders in Pasdec Automotive Technologies Botswana, The Botswana Gazette has learnt.
Based in Lobatse, Pasdec Botswana manufactures and supplies automotive wiring harnesses for globally leading vehicle brands like Nissan and Volkswagen. The company relocated from South Africa to Botswana in 2015 in a move that was completed in June 2017 and cost P200 million. The company’s commissioning later saw BDC signing a deal to take a stake valued at P52.1 million in the subsidiary while also agreeing to increase its stake in the future.
Media reports say the Pasdec deal was sealed after high level diplomacy involving trips to Malaysia by former trade minister Vincent Seretse and and President Mokgweetsi Masisi when he was vice president. The company soon became BDC’s flagship project after a period of turbulence at the government’s investment agency.
Several years later, BDC now wants to increase its stake in Pasdec as according to a statement from Competition and Consumer Authority (CAA). “Pursuant to section 49 (1) of the Competition Act 2018, the Competition and Consumer Authority has received a merger notification for the proposed acquisition of 60 percent shareholding in Pasdec Automotive Technologies Botswana (Pty) Ltd by the Botswana Development Corporation Ltd,” says a statement from the Competition Authority.
Established in 1970 under the Companies Act, BDC is a company limited by shares and owned by the Government of Botswana. It is mandated at driving industrialisation of the country by providing financial assistance to investors with commercially viable projects. BDC provides both debt and equity financing to commercially viable projects that aim to pioneer new industries, unlock value in existing industries and create significant employment.
Meanwhile, the target enterprise in Pasdec Botswana is wholly controlled by Pasdec Resources SA Ltd (“Pasdec Resources”), a South African based company, which is in turn controlled by Pahang Off-Shore (Sdn) Bhd, a Malaysian registered company. Pahang is controlled by Pasdec Holdings Berhada, a company listed on the main board of the Bursa Malaysia Securities Berhad.
Pasdec Botswana has a manufacturing plant in Lobatse. The plant’s capacities are customised to accommodate both high volume production lines and lesser volume jobbing shop-type orders. The 20 000m2 plant is designed for current demand and future growth opportunities.