BDC loses P300m as Sechaba stock crashes

BDC chief financial officer, Mbako Mbo
BDC chief financial officer, Mbako Mbo

The Botswana Development Corporation (BDC) suffered a P300 million decline in net assets in the balance sheet in the year to June 2017 as the bear run on the Botswana Stock Exchange (BSE) knocked down the value of one of its key assets, Sechaba Breweries Limited.

In the 12 months to June 2017, Sechaba Breweries, which was 26% owned by BDC before selling down to 24%, saw its share price on the BSE tumble 31% from P29 per share to about P20 per share.

At the beginning of the financial year, BDC’s 26% shareholding in Sechaba translated to 34.58 million shares valued at P1.01 billion. But at the end of the financial year after the 31% drop in the share price, the value of the investment in Sechaba had dropped to P691 million, representing a fall in value of over P300 million.

Editor's Comment
The corrupt must be punished

The findings reveal a disturbing pattern of misconduct and lack of transparency that cannot be ignored.The Tribunal, led by Judge President Justice Kabelo Lebotse, has rightly condemned the Ministry for its eyebrow raising conduct in awarding a P1.8 billion water tender to China Civil Engineering Construction Corporation (Pty) Ltd and Zhong Gan Engineering & Construction Corporation (Pty) Ltd.The award was made despite alleged clear evidence that...

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