Bidvest Namibia has purchased Novel Motors for a total consideration of N$231.8 million, which would now join other vehicle brands represented by Bidvest.
Bidvest Namibian announced the acquisition of the entire issued share capital of International Capital Investments (Pty) Ltd, trading as Novel Motor Company (Novel Motors) and Lenkow (Pty) Ltd, which owns the Windhoek showroom and service centre premises from where Novel Motors operates.
Purvance Heuer Head of Securities at the Simonis Storms Securities said that Novel Motors operates two dealerships in Namibia and is the main representative of Ford and the sole representative of Jaguar, Land Rover, Volvo and Mazda vehicles in Namibia.
“Novel Motors offers the sales of new and pre-owned vehicles, financing and insurance products, parts and accessories and after-sales services,” Heuer said.
Heuer said that according to the announcement made by Bidvest on the attainment of the acquisition, the cost was N$231.8million and was funded from internal cash sources.
“We are of the opinion that this acquisition is a step in the right direction to gradually lower Bidvest’s exposure to the fishing industry,” he added.
According to his analysis made by Simonis Storms Securities, the acquisition will improve the diversity of their revenue streams and increase growth potential for the future.
“With limited information available, we amended our valuation model for the acquisition and additional revenue stream,” he said, adding that although they see this acquisition as being a positive thing for Bidvest, they will rather maintain their sell rating for the group.
“We expect this acquisition to have a minimal impact on the bottom line. There are too many uncertainties that remain regarding the fishing quotas,” Heuer said adding that they amended their current valuation price for Bidvest Namibia at 869c and their TP 1023.
Simonis Storm Securities is a well-established Namibian financial services firm, one of the leading independent stock-broking firms in Namibia. In summary Simonis Storms Securities made an opinion saying that the acquisition to result in only slight decrease in exposure to fishing quotas.
“We maintain our SELL rating for the company, our valuation is 869c and target price 1023c, we await Bidvest full year earnings release in order to provide us with further insight into this acquisition,” he said.
The Novel Motors which employs almost 200 people, operates two dealerships in Namibia and is the main representative of Ford and the sole evocative of Jaguar Land Rover, Volvo and Mazda vehicles in Namibia. Novel Motors offers the sale of new and pre-owned vehicles, financing and insurance products, parts and accessories and after-sales service.
Bidvest Namibia is the holding company for the Bidvest Group Limited’s interests in Namibia, boasting a broad spectrum of well-recognised brands that has become characteristic of The Bidvest Group Limited.
Bidvest Namibia has also made known that they are committed to black economic empowerment (BEE).
Bidvest Namibia previously made an acquisition of 100% of the issued shares in Taeuber & Corssen. The N$188,7 million acquisition will be funded by a N$146,2 million cash component and the issuing by Bidvest Namibia of five million new ordinary shares in Bidvest Namibia to T&C RSA at an issue price of N$8,50 per share.