Botash sale timeline remains uncertain
Chakalisa Dube | Monday May 6, 2024 06:00
More than a year ago, South Africa's Chlor-Alkali Holdings (CAH) announced plans to exit its 50% shareholding in Botash, the country's sole producer of soda ash and salt. MDCB, the state-owned minerals investment company, was then appointed the commercial advisor in the transaction. Government is reportedly considering buying the 50% shareholding from CAH, a development that would result in the latter owning the entire shares.
Recently, MDCB Chief Executive Officer, Matome Tsholetsa Malema, told the media that the process to complete the transaction is ongoing but there can be no concrete timelines given.
“We want to complete the transaction as soon as possible but it depends on the sales process because we are dealing with another party. “We think the transaction will be complete within a reasonable period. “Disposing investments of this nature takes time. “It can take a year or two, but we are on the right track,” Matome said.
“We believe that early next year we should be somewhere. Unfortunately, at this point in time we can’t divulge the exact date in relation to the completion of the sales process,' he added. “We will keep on giving updates.”
Owned by the Bud Group, CAH came in as a technical partner for Botash in 2009 after buying shares that De Beers, Anglo American, AECI, and various financial institutions owned. The Government of Botswana has maintained a 50% shareholding in Botash over the years.
Last year, Botash launched an ambitious growth and expansion plan to serve existing and new markets. The strategy, which runs until 2027, will cost the company over P6 billion. The strategy dubbed ‘Double Five in Five Safety’ will see the table salt producer expanding the production of sodium bicarbonate products.
In addition, under the strategy, the company aims to increase its soda ash production capacity to 430,000 tonnes per annum, from the current 300,000 tonnes by 2027, while fine salt production capacity will double to 220,000 tonnes per annum over the same period.
A new product, Sodium Bicarbonate, will also be introduced, with the establishment of a 50,000-tonne per annum capacity plant. The new product will be targeting the food, animal feed, chemical and detergent markets.
Botash is already the largest producer of natural sodium products in Africa, producing soda ash and salt.