Mexican snaps up Erindi
A Mexican billionaire is set to become the new owner of the 71 000-hectare Erindi Private Game Reserve, subject to the approval of the Namibian Competition Commission (NaCC).
Alberto Baillères (87), president of the multinational consortium BAL Group, is said to be a respected Mexican business leader and philanthropist.
A press statement issued on behalf of the buyer confirmed that a sales agreement was being finalised with the owners of Erindi. The transaction is still subject to NaCC approval and certain other conditions.
“All other governmental and regulatory approvals have been obtained and complied with in full,” says the statement.
Baillères intends to continue Erindi's conservation activities.
He is said to have experience in the management of wildlife protection ranches in different parts of the world. “This will bring benefits to all Namibians and the country. The number of jobs at Erindi will be preserved and within this number, new and better-remunerated opportunities will be created in the country, directly and indirectly,” the statement reads.
According to the statement Baillères intends to upgrade Erindi to a world-class tourist attraction, and to protect its wildlife by implementing international best practices in anti-poaching and conservation initiatives. “Baillères has stressed his commitment to preserve Erindi for the benefit of future generations of Namibians and the world. The intention is to turn Erindi into a flagship private game reserve, and any future profits generated from this social enterprise will be primarily reinvested in Erindi,” said Koos Pretorius of ENSafrica, the legal counsel for the buyer.
According to him Baillères has visited Namibia several times and admires the beauty of the country and the spirit and warmth of the Namibian people.
“The transaction-oriented due diligence confirmed that while Erindi would not be suitable for farming or resettlement, it holds important potential as an area for wildlife conservation. The buyer's plans for Erindi will greatly benefit the tourism sector, job creation and skills development, and of course in consequence the Namibian economy.”
Pretorius further said that Baillères had complied with each and every regulatory approval required under Namibian law.
“The government responded professionally, efficiently and promptly, and was scrupulous throughout the process,” said Pretorius.
He said Baillères stressed the importance of his plans for Erindi being well received by Namibians.
“He has made it clear from the outset that he will only complete the purchase of Erindi if all legal requirements are in place and if he and the investment he intends to make are welcomed by Namibians.”
Baillères's net worth is estimated at US$8.3 billion according to Forbes.
Tourism minister Pohamba Shifeta said the government had asked Baillères about his intentions for Erindi and he promised that it would remain a game reserve.
“We do not want Erindi to lose its conservation and game-reserve status,” said Shifeta.
He said Baillères was involved in several other conservation areas and that reassured the government.
Regarding Erindi being sold to a foreigner, Shifeta said: “Erindi was not in Namibian hands before. It is going from one foreigner to another. There is little we can do about this. We do not have the money and we are focusing on other priorities. All we wish now is that it remains a game reserve and that conservation programmes continue.”
The government and Erindi's owners have been embroiled in a legal battle over the sale for several years.
Erindi first took legal action against the lands minister in October 2016. In the initial lawsuit, it asked the court to order the land reform minister to hand over all valuation reports the minister had relied on to make an offer to buy Erindi for N$265 million.
The company also asked the court to declare that the minister had acted in breach of his constitutional duty to act fairly, reasonably and in compliance with the law when he made the offer to buy Erindi for N$265 million. It further wanted the court to order the minister to provide the company with a letter consenting to the sale of Erindi to a non-Namibian buyer.
In an amended application filed last June, Erindi wanted the High Court to review and set aside the minister's offer of N$265 million.
Erindi also applied for an order declaring that there was a written agreement in which the government bought the farm for N$1.92 billion. Alternatively, it asked the court to declare that the minister had declined the company's offer to sell to the government, and that Erindi was therefore entitled to a waiver allowing it to sell the land to a private buyer.
It further wanted the court to declare that Erindi was entitled to market and sell itself as a going concern - also to non-Namibian potential buyers.
An out-of-court settlement of the pending High Court case was recently negotiated. The government announced last month that it was unable to buy Erindi, and that the farms constituting the game reserve were unsuitable for resettlement purposes.
ELLANIE SMIT
Alberto Baillères (87), president of the multinational consortium BAL Group, is said to be a respected Mexican business leader and philanthropist.
A press statement issued on behalf of the buyer confirmed that a sales agreement was being finalised with the owners of Erindi. The transaction is still subject to NaCC approval and certain other conditions.
“All other governmental and regulatory approvals have been obtained and complied with in full,” says the statement.
Baillères intends to continue Erindi's conservation activities.
He is said to have experience in the management of wildlife protection ranches in different parts of the world. “This will bring benefits to all Namibians and the country. The number of jobs at Erindi will be preserved and within this number, new and better-remunerated opportunities will be created in the country, directly and indirectly,” the statement reads.
According to the statement Baillères intends to upgrade Erindi to a world-class tourist attraction, and to protect its wildlife by implementing international best practices in anti-poaching and conservation initiatives. “Baillères has stressed his commitment to preserve Erindi for the benefit of future generations of Namibians and the world. The intention is to turn Erindi into a flagship private game reserve, and any future profits generated from this social enterprise will be primarily reinvested in Erindi,” said Koos Pretorius of ENSafrica, the legal counsel for the buyer.
According to him Baillères has visited Namibia several times and admires the beauty of the country and the spirit and warmth of the Namibian people.
“The transaction-oriented due diligence confirmed that while Erindi would not be suitable for farming or resettlement, it holds important potential as an area for wildlife conservation. The buyer's plans for Erindi will greatly benefit the tourism sector, job creation and skills development, and of course in consequence the Namibian economy.”
Pretorius further said that Baillères had complied with each and every regulatory approval required under Namibian law.
“The government responded professionally, efficiently and promptly, and was scrupulous throughout the process,” said Pretorius.
He said Baillères stressed the importance of his plans for Erindi being well received by Namibians.
“He has made it clear from the outset that he will only complete the purchase of Erindi if all legal requirements are in place and if he and the investment he intends to make are welcomed by Namibians.”
Baillères's net worth is estimated at US$8.3 billion according to Forbes.
Tourism minister Pohamba Shifeta said the government had asked Baillères about his intentions for Erindi and he promised that it would remain a game reserve.
“We do not want Erindi to lose its conservation and game-reserve status,” said Shifeta.
He said Baillères was involved in several other conservation areas and that reassured the government.
Regarding Erindi being sold to a foreigner, Shifeta said: “Erindi was not in Namibian hands before. It is going from one foreigner to another. There is little we can do about this. We do not have the money and we are focusing on other priorities. All we wish now is that it remains a game reserve and that conservation programmes continue.”
The government and Erindi's owners have been embroiled in a legal battle over the sale for several years.
Erindi first took legal action against the lands minister in October 2016. In the initial lawsuit, it asked the court to order the land reform minister to hand over all valuation reports the minister had relied on to make an offer to buy Erindi for N$265 million.
The company also asked the court to declare that the minister had acted in breach of his constitutional duty to act fairly, reasonably and in compliance with the law when he made the offer to buy Erindi for N$265 million. It further wanted the court to order the minister to provide the company with a letter consenting to the sale of Erindi to a non-Namibian buyer.
In an amended application filed last June, Erindi wanted the High Court to review and set aside the minister's offer of N$265 million.
Erindi also applied for an order declaring that there was a written agreement in which the government bought the farm for N$1.92 billion. Alternatively, it asked the court to declare that the minister had declined the company's offer to sell to the government, and that Erindi was therefore entitled to a waiver allowing it to sell the land to a private buyer.
It further wanted the court to declare that Erindi was entitled to market and sell itself as a going concern - also to non-Namibian potential buyers.
An out-of-court settlement of the pending High Court case was recently negotiated. The government announced last month that it was unable to buy Erindi, and that the farms constituting the game reserve were unsuitable for resettlement purposes.
ELLANIE SMIT
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