Competition Authority Rejects Acquisition of Shares In Mmegi Investment Holdings By Universal House

The Competition Authority has rejected the acquisition of 28.73% shares in Mmegi Investment Holdings (Pty) Ltd by Universal House (Pty) Ltd. In its decision on 17^th February, it said the transaction which had already been implemented without prior notification to the Authority, is likely to result in the prevention or substantial lessening of competition, in the market under consideration.

Given the fact that the transaction had already been implemented, the Authority directed the parties to dispose of the 28.73% shares already acquired in Mmegi Investment Holdings (Pty) Ltd by Universal House (Pty) Ltd, to an entity or person(s) with no business interests affiliated in any way with the acquiring entity, within three (3) months from the decision date; which the Authority expects will be notified in the event that the transaction meets the stipulated merger control thresholds.

The Authority further directed the merging parties to report to it within 14 business days from the decision date how the disposal will be done. Further, within two months from the decision date, the merging parties are required to provide the Authority with a status update on their progress towards compliance with the decision.

Universal House, the acquiring entity, is a company duly incorporated in accordance with the Laws of Botswana. The entity is a Special Purpose Vehicle formed particularly for this transaction, and as such has no other business activities. Universal House is wholly owned by Mr. Jamali Seyed Abolfazi, a Motswana national with various business interests in Botswana, of which are predominantly in property development.

MIH, the target entity, is a company duly incorporated in accordance with the Laws of Botswana. MIH’s business activities include printing, publishing and distribution of books, publications and newspapers. The main shareholders of MIH are: Universal House, Methaetsile Leepile, Titus Mbuya, Botswana Mine Workers Union and Mmegi Publishing Trust.

MIH is a holding company for Dikgang Publishing Company- publishers of Mmegi and The Monitor newspapers; CBET- publishers of the Botswana Guardian and the Midweek Sun newspapers; Mmegi Publishing House; specialists in the publication of textbooks mainly for the school market; BONESA Distribution Company; and Mmegi Broadcasting Corporation.

MIH, through Mmegi Broadcasting Corporation, has 18% shareholding in Your Friend (Pty) Ltd, an entity incorporated in Botswana and trading as Gabz FM, a private radio station. The Directors of MIH are Methaetsile Leepile; Titus Mbuya; Efan Khan; Eugene Mukomeza; Bobana Badisang and Jack Tlhagale.