Ten-month-old firm offers to buy Sperrgebiet’s N$23m debt

A little-known company, Hosta Investments (Pty) Ltd, has offered to take over a N$23 million debt owed by the Sperrgebiet Diamond Mine (SDM) to the national power utility, NamPower.Hosta Investments has proposed that NamPower sell its right, title and interest in the SDM debt, including all rights of action to pursue and recover the claim against the debtor in its own name.NamPower confirmed that SDM was a customer but that its power supply agreement had been terminated after it failed to pay outstanding debt of about N$23 million. The power utility also confirmed that Hosta Investments has expressed interest in acquiring the debt and that the proposal is currently being reviewed through relevant governance structures."In the event the proposal is approved, any approval will be made by the relevant policies and authority levels governing the institution," NamPower said in written responses to Namibian Sun last week. "Please be advised that NamPower is still considering the proposal from a debt recovery perspective in line with relevant policies."NamPower could not, however, say who Hosta Investments' shareholders are, referring Namibian Sun to the Business and Intellectual Property Authority (Bipa).NamPower’s board of directors, chaired by lawyer Clive Kavendjii, held a meeting last Thursday.On Thursday, Kavendjii told Namibian Sun the board had, however, not taken a decision on the matter during the meeting.“I was in Europe when the issue went through the departments and only got to find out about it yesterday at the board meeting," Kavendjii said.“It was a submission like all others, we reflected on it, and we took a particular position which I cannot divulge... but there was no resolution made,” he confirmed.Purchase proposalA deed of cession of claim and right of action in possession of Namibian Sun indicates that Hosta Investments Pty Ltd has proposed to pay NamPower N$13.5 million in five instalments, with an upfront payment of N$3.5 million.Hosta Investments has proposed paying N$2 543 750 for each of the four remaining instalments.Should the agreement be signed this month, it means the first instalment will be paid on 24 December, the second on 22 June 2026, the third on 19 December 2026 and the final payment on 17 June 2027.Documents show that the money will be paid directly into NamPower's bank account or the trust account of NamPower's lawyers.Heavy lossesSDM holds the mining licence and operates the Elizabeth Bay Diamond Mine, located about 72 kilometres from Lüderitz in the //Kharas region.The mine went under care and maintenance in April 2023 after NamPower disconnected its power supply due to outstanding debt.Namdeb owned the Elizabeth Bay Diamond Mine until October 2020, when it sold its rights to SDM, which was owned by Lewcor Holdings (75%), along with MSF Commercials and David Sheehama. A 5% stake was set aside for an employee trust.In mid-2022, Zimbabwean company Global Emerging Markets Group – often trading as RZ Murowa – acquired a 78% stake in SDM from its founding shareholders, leaving Lewcor and other investors with the remaining 22%.The mine resumed operations in September 2022 but halted actual mining activities in April 2023 due to underperformance and substantial financial losses.The losses included N$205 million from production levels that fell 83% below target. NamPower disconnected the power supply on 14 April 2023.Temporary extensionAccording to internal correspondence seen by Namibian Sun, SDM first met with NamPower on 29 May 2023 to request that the national utility hold off on terminating its Power Supply Agreement (PSA), citing financial strain.NamPower granted a temporary extension until 31 July 2023, and the executive committee placed the termination process on hold pending further discussions.A follow-up meeting on 14 August 2023 saw SDM request a reduction in electricity capacity while a security deposit remained in place.NamPower approved the request, and SDM subsequently signed both a revised PSA and a repayment agreement.However, the situation worsened when SDM failed to meet its new payment obligations.On 25 January 2024, NamPower issued a demand letter giving SDM 14 working days to settle its arrears or face contract termination.In a final meeting on 16 February 2024, SDM requested urgent discussions with the power utility and ultimately agreed to terminate power supply, effectively suspending all on-site activity at the Elizabeth Bay mine.Notice of terminationAccording to official NamPower records, the company issued a notice of termination on 8 May 2024, retroactively setting the effective termination date as 30 April 2024.This followed months of non-compliance with the terms of the revised power agreement signed in mid-2023 after repeated requests by SDM for capacity reductions and payment extensions.As part of the financial settlement process, NamPower recalled a guarantee of N$2.95 million, which was successfully received.Additionally, a cash security deposit of N$1.46 million, held by NamPower, was set off against the overdue balance.Despite these deductions, the total amount still owed stands at N$23.8 million, inclusive of accrued interest of N$3.13 million.With no payments received since the termination, NamPower referred the debt to its legal division for further action, a process still underway to this day, at which stage Hosta Investments entered the picture. Debt acquisition requestHosta Investments – a 10-month-old firm registered with Bipa – has now stepped in with a proposal to acquire the debt.According to Bipa records, the company was registered on 13 September 2024 and is owned by Mouton Danelle and Cornelis Pieter Meissen.In a 19 May 2025 memo, signed by NamPower managing director Simson Haulofu and seen by Namibian Sun, Hosta Investments requested that the audit and risk management committee recommend the proposal to the board for approval.The risk and audit committee consists of Silke Hornung (chairperson), Evat Kandongo and Shimweefeleni Hamutwe.The committee met two weeks ago, and sources claim that it has allegedly prepared a proposal for the board to write off the debts.

Ten-month-old firm offers to buy Sperrgebiet’s N$23m debt

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Namibian Sun 2025-07-01

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Ten-month-old firm offers to buy Sperrgebiet’s N$23m debt

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Namibian Sun 2025-07-01

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