Friday, October 23, 2020

CMB linked fund acquire 8.83% of Wilderness Holdings

A private equity fund, Botswana Opportunities Partnership (BOP) has reportedly purchased ordinary shares of the Botswana Stock Exchange (BSE) quoted hospitality group, Wilderness Holdings. 

CMB is the contracted manager of a private equity fund called the Botswana Opportunity Partnership (BOP). The private equity fund (BOP) was established by BPOPF and is used by CMB to invest in businesses in Botswana on its behalf. The fund makes direct investments in private businesses otherwise known as unlisted companies

Wilderness Holdings on the other hand began operating 30 years ago in Botswana and has focused its operations on safaris in very wild, pristine and remote parks. Operations began initially within Botswana and then spread into the rest of Southern Africa and Seychelles. Over time, the business has evolved into a specialist luxury safari operation with 70 different safari camps and lodges in seven SADC countries, hosting in excess of 25 000 guests per annum

Late last week information emerged from the capital markets that the CMB linked fund (BOP) has purchased shares representing 8.82% of the Wilderness shares in issue. 

On Monday, the BSE listed company confirmed the transaction adding that the shares acquired by Botswana Opportunities Partnership were acquired from Winslow Financial Investments Limited. 

“Winslow Financial Investments Limited has now disposed of its entire holding in the Company. Wilderness”, Wilderness Holdings said Monday. 

In 2015, CMB invested in local insurance company, Bona Life in exchange for a 25 percent ownership stake. The transaction followed a financial scandal that almost sullied the goodwill of Bona Life (Then Bramer Life, now called Bona Life). At the time, the insurance firm shopped for new investors and attracted the attention of CMB.

CBM is backed with over 10 years experience in the management of annuity books, the fund seeks to invest in businesses that are undercapitalised but well run, with good products and good growth potential. 

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