Botash invites bidders for shareholding

WANETSHA MOSINYI
Correpondent | Thursday May 31, 2007 00:00

Late last year, Botash announced that the company had attracted the attention of various companies in the chemicals industry.  In a recent interview, the Managing Director of Botash, Derek Cochrane, confirmed that a number of companies had expressed interest, but declined to name them or the extent of their bids.  Cochrane referred all further inquiries to Imara, a South African firm engaged in the negotiations on behalf of Botash.

The Director of Imara, Rod MacLeod, was terse in his response: 'Negotiations are proceeding and an announcement will be made at the appropriate time.'

Botash stated in a recent statement: 'In recent months, a number of companies have made approaches to the shareholders of Botash with a view to acquiring shares in Botash and the current shareholders are now formally considering some of these approaches.'  However, the company warned that interested parties should take into account the interests of all Botash stakeholders, including its employees and customers, and that any new shareholders in Botash must commit to its long-term future. 'Any sale of shares that may ensue from these discussions (will) be subject to the approval of the Botswana Government, the respective boards of directors of the other Botash shareholders and other regulatory authorities. Any such sale should not materially affect the daily operations of Botash,' the statement said.

Botash is one of Africa's major producers and suppliers of soda ash and salt. The company, originally known as Soda Ash Botswana, was born out of an agreement in November 1988 between the Botswana Government, AECI, Anglo American Corporation and De Beers to build a soda ash and salt plant for the exploitation of the natural resources of Sua Pan and provide most of South Africa's strategic soda ash requirements. Soda Ash Botswana was liquidated in May 1995 as a result of excessive financial liabilities as well as unfavourable contractual obligations with its major suppliers. The company was restructured as Botswana Ash in October 1995. The Government of Botswana is the major shareholder with 50 percent and AECI, Anglo American Corporation and De Beers have 14 percent each. Financial institutions hold the remaining 8 percent.

Soda ash produced by Botash is a basic chemical used mainly in the manufacture of glass and in metallurgical applications, as well as in the detergent and chemicals industries.
Botash exports 99.95 percent of its 240, 000 tonnes of soda ash production. Locally, Francistown-based textile company, Nortex, uses 200 tonnes per annum for its dyeing processes.

Salt is Botash's other major product. Coarse salt is exported to South Africa for use in the production of chlorine and caustic soda. Both fine and coarse salt is supplied for domestic consumption throughout Southern and Central Africa.