Biest Wants Novel Motor Company

BIEST Namibia, a diversified group of companies listed on the Namibian Stock Exchange is in the process of buying leading car dealer, Novel Motor Company also commonly known as Novel Ford.

Novel Motor is the main representative of Ford and Mazda and the sole representative of Jaguar, Land Rover and Volvo in Namibia. Novel is a 100% Namibian company employing almost 200 people.

The Namibian has it on good authority that Novel employees have already been told about the impending takeover by Biest.

Biest CEO Sebby Kankondi asked The Namibian “to wait for an official announcement in about 10 days”.

Such a deal will normally have to go through several regulatory approvals including that of the Namibian Competition Commission and the Johannesburg and Namibia stock exchanges were Biest is listed.

A source working on the deal said yesterday that Biest and Novel are finalising the deal with an official announcement expected soon.

Novel Motor MD Ricardo Raposo refused to comment. “No comment,” he said through HeadSpace, its public relations company.

In the 2014 annual report, Lindsay Ralphs, Biest Namibia’s non-executive chairman said the challenges of 2014 confirmed the strategic necessity for the continued diversification of its base of business – through innovation within its existing operations, and through entry into new markets.

“No acquisitions were made in 2014, but our appetite for acquisitive growth remains undiminished, especially if it contributes to further diversification. In our quest for growth we will not restrict ourselves to activities in which we have a long-established base. Entirely new areas of opportunity will be explored. We are an entrepreneurial group and we will pursue all avenues that will enable us to unlock value,” said Ralphs.

In 2014, Biest recorded revenues of N$3,7 billion compared to N$3,3 billion in 2013, an increase of 12,4%.

However, operating profit was significantly lower at N$501 million (2013: N$599,1 million).

Cash generated by operations decreased by 29,3% to N$413,8 million (2013: N$585,6 million).

Source : The Namibian