Qatar Investment Authority-backed Kasada Capital Management has been given the greenlight by the Namibian Competition Commission (NaCC) to complete its acquisition of Safari Hotels and Conference Centre.
The deal, which is being funded through a N$2.6 billion debt facility granted by International Finance Corporation, in collaboration with Proparco to Kasada, was approved last week with no conditions attached.
“The Commission approved the acquisition on 17 June 2022 without conditions. Merging parties’ activities horizontally overlap as they both provide short-term accommodation services and conferencing facilities. However, there is no geographic overlap as the acquiring undertaking has no presence in Namibia and the proposed transaction will be its first investment in Namibia,” NaCC Spokesperson Dina //Gowases said in response to an inquiry from The Brief.
She said the transaction, the second acquisition through Kasada Hospitality Fund LP as it seeks to reinforce its position as a leading hospitality platform in Sub-Saharan Africa, will not prevent competition in the country’s hospitality sector.
“The proposed transaction is therefore found unlikely to substantially lessen or prevent competition or to result in any undertaking acquiring or strengthening a dominant position in any relevant market. Furthermore, the acquiring group has no employees in Namibia whilst the target undertaking employs 43 employees, all of whom will be retained post-merger,” //Gowases said.
The Safari Hotels and Conference Centre consists of the 215-key Safari Court Hotel, the 199-key Safari Hotel and Namibia’s foremost Meetings, Incentives, Conferencing, Exhibitions (MICE) venue, the Safari Court Conference Centre that includes a 1,600m2 grand ballroom that can hold up to 2,400 delegates.
Kasada has set aside a N$100 million kitty for renovations to further improve the existing conference facilities, which are a hub for local, regional, and international events in Namibia, creating a go-to destination for both business and leisure guests.
The Safari Court Hotel will be converted to Mövenpick, and the Safari Hotel will become an ibis Styles.
Kasada’s Safari Hotel deal, brings its portfolio to a total of 10 hotels and over 2,000 rooms in four countries.
