Denker loses bid for Ameib
Well-known professional hunter, Kai-Uwe Denker, stands to lose on land after he claims to have been hoodwinked by a South African business partner.
Namibian Kai-Uwe Denker has lost his prolonged battle for majority shareholding in a company through which he jointly bought a farm with a foreigner and now faces the prospect of expropriation of the farm by the state or sale of execution.
Denker and South African Michael Viljoen jointly bought farm Ameib in the Erongo Region in 2012. Initially Denker had the controlling shareholding (51%) in Ameib Rhino Sanctuary, the company formed for the purchase of the farm.
However, by the time the farm was transferred to the company on 22 August 2012, he no longer held majority shareholding after he had transferred a 1% share to Viljoen.
Denker has long maintained that the 1% was illegally transferred behind his back by Namibian law firm Francois Erasmus Law.
He also accused Viljoen of having hoodwinked him into believing that the Land Reform Act permits foreigners to own shares in a company buying farmland in equal shareholding when in truth it is not permitted by law. Such an arrangement would be permitted if the lands minister has given consent.
The Supreme Court on Wednesday upheld a High Court judgement that refused Denker's application to declare the transfer of the 1% in Ameib Rhino Sanctuary to Viljoen and his Michael Viljoen Trust as unlawful and invalid.
The court also shot down his argument that the transfer of the 1% to the Michael Viljoen Trust is void because it is a foreign-registered entity.
Viljoen had in his counter application asked that the court order the Ministry of Land Reform to direct a forced sale of farm Ameib on public auction or to wind up the Ameib Rhino Sanctuary because of its alleged inability to pay its debts.
The order of the Supreme Court directs the land reform ministry to proceed to order a forced sale of the farm on public auction in terms of Section 60 of the Agricultural (Commercial) Land Reform Act of 1995.
Background
According to the Supreme Court judgement, Denker and Viljoen in July 2010 came to an understanding to jointly buy a farm in Namibia.
Denker in his application to the High Court said both he and Viljoen understood that there were restrictions on the purchase of farms by non-Namibians.
They agreed to equally contribute N$6 million to the purchase price of N$12 million, and Denker then made a bid of N$10.3 million for the farm at an auction.
Each of the parties paid N$5.4 million towards the purchase price and formed a shelf company, Bonsai Investment Eighty-Three (Pty) Ltd, whose name later changed to Ameib Rhino Sanctuary in which Denker held 51% shares and Viljoen the remaining 49% in the name of Cobbett Trust registered in the Isle of Man, which represents Viljoen's shares.
The transfer of the farm was done on 22 August 2012 by which time Denker no longer held majority shareholding after the transfer of the 1% to Viljoen.
The relationship between Denker and Viljoen fell apart during 2013 because they could not agree on the purpose of the farm and the shareholding split.
Catherine Sasman
Denker and South African Michael Viljoen jointly bought farm Ameib in the Erongo Region in 2012. Initially Denker had the controlling shareholding (51%) in Ameib Rhino Sanctuary, the company formed for the purchase of the farm.
However, by the time the farm was transferred to the company on 22 August 2012, he no longer held majority shareholding after he had transferred a 1% share to Viljoen.
Denker has long maintained that the 1% was illegally transferred behind his back by Namibian law firm Francois Erasmus Law.
He also accused Viljoen of having hoodwinked him into believing that the Land Reform Act permits foreigners to own shares in a company buying farmland in equal shareholding when in truth it is not permitted by law. Such an arrangement would be permitted if the lands minister has given consent.
The Supreme Court on Wednesday upheld a High Court judgement that refused Denker's application to declare the transfer of the 1% in Ameib Rhino Sanctuary to Viljoen and his Michael Viljoen Trust as unlawful and invalid.
The court also shot down his argument that the transfer of the 1% to the Michael Viljoen Trust is void because it is a foreign-registered entity.
Viljoen had in his counter application asked that the court order the Ministry of Land Reform to direct a forced sale of farm Ameib on public auction or to wind up the Ameib Rhino Sanctuary because of its alleged inability to pay its debts.
The order of the Supreme Court directs the land reform ministry to proceed to order a forced sale of the farm on public auction in terms of Section 60 of the Agricultural (Commercial) Land Reform Act of 1995.
Background
According to the Supreme Court judgement, Denker and Viljoen in July 2010 came to an understanding to jointly buy a farm in Namibia.
Denker in his application to the High Court said both he and Viljoen understood that there were restrictions on the purchase of farms by non-Namibians.
They agreed to equally contribute N$6 million to the purchase price of N$12 million, and Denker then made a bid of N$10.3 million for the farm at an auction.
Each of the parties paid N$5.4 million towards the purchase price and formed a shelf company, Bonsai Investment Eighty-Three (Pty) Ltd, whose name later changed to Ameib Rhino Sanctuary in which Denker held 51% shares and Viljoen the remaining 49% in the name of Cobbett Trust registered in the Isle of Man, which represents Viljoen's shares.
The transfer of the farm was done on 22 August 2012 by which time Denker no longer held majority shareholding after the transfer of the 1% to Viljoen.
The relationship between Denker and Viljoen fell apart during 2013 because they could not agree on the purpose of the farm and the shareholding split.
Catherine Sasman
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