Both TransNamib and the National Union of Namibian Workers yesterday confirmed an offer is still on the table by the Swapo-affiliated union to purchase the four-star Swakopmund Hotel and Entertainment Centre for N$155 million. However, TransNamib noted it cannot yet consider the offer while a court case with its business partner in the venture is still ongoing.
“Currently, there is a litigation process for the Swakopmund Hotel. TransNamib owns 50%, while Stocks & Stocks (Leisure) owns the other 50%. It is our objective to ensure that whatever we do is in the best interest of TransNamib and, therefore, our interest of 50% in Swakop Hotel is of prime importance to us – and this remains our focus. Our intention is, therefore, to find the most appropriate solution for the current situation and to ensure sustainability of the hotel,” said TransNamib’s spokesperson Abigail Raubenheimer.
Contacted for comment on the proposed transaction, secretary general of the NUWN Job Muniaro also confirmed the offer is on the table and clarified there is no time frame attached to the proposal, despite reports that the offer expired on 31 March.
“The offer is on the table but let us give it some time so everyone can consider all the relevant information,” said Muniaro.
The union boss added that the NUNW’s business partners are interested in helping reduce Namibia’s high unemployment rate but emphasised that consultation is first required with the labour ministry before he can make any announcements to the effect.
While the NUNW reportedly said it is willing to acquire all shares in the hotel for N$155 million, a High Court judge last year ordered TransNamib to sell its shareholding in the hotel to Stocks & Stocks Leisure Namibia for N$5 million.
During the case between TransNamib and Stocks & Stocks, it came to light that the hotel was financially insolvent with its assets valued at N$64.5 million while liabilities amounted to N$110.6 million. The trail between the parties emanated from a Stocks & Stocks Leisure complaint alleging that TransNamib failed to provide its due share of financial support throughout the partnership.
- ebrandt@nepc.com.na