NaCC delves into Ongwediva Medipark ownership
The Namibian Competition Commission (NaCC) wants to know whether there were any changes to the ownership status of the country’s biggest private hospital in the north, Ongwediva Medipark.
This comes after a rift developed between shareholders and a scramble for control of the medical facility ensued. The situation is so dire that shareholders have since dragged each other to court following counterclaims of fraud, maladministration and dubious sale of shares.
“Please be informed that the NaCC has taken note of media articles relating to the control of Ongwediva Medipark. The articles contain allegations that Erongo Medical Group controls Ongwediva Medipark and has done so since 2017,” wrote NaCC CEO Vitalis Ndalikokule last week.
In his letter to Erongo Medical Group (EMG) CEO Matthias Braune, Ndalikokule said the commission wants to establish whether changes in control over Ongwediva MediPark occurred, and if such changes amounted to a merger transaction as defined in the terms of the Competition Act.
The private healthcare group owns the Welwitschia Hospital in Walvis Bay and has interests in radiology and telemedicine, among other segments. It also runs Ongwediva Medipark as well as Medixx Occupational Health Services.
“In terms of Section 42(1) of the Act, a merger occurs when one or more undertakings directly or indirectly acquires or establishes direct or indirect control over the whole or part of the business of another undertaking.
“Mergers can occur in any manner and may include the sale of shares or any interest if it results in a change of control over an undertaking and falls within the ambit of the applicable merger thresholds,” he wrote.
Braune was given seven days to respond.
We want answers
A merger is notifiable to the commission if the value of the proposed merger is above the specified notification threshold of N$30 million for the combined annual turnover and assets of the merging undertakings, and N$15 million for the annual turnover or assets of the target undertaking.
According to Ndalikokule, Braune must provide the commission with an indication of how and when control over Ongwediva MediPark was acquired.
He also requested audited financial statements for the acquiring and the transferred undertaking as well as copies of any relevant agreements in relation to the change in or acquisition of control over Ongwediva MediPark.
Namibian Sun last year reported that tension is simmering within EMG stable after one of its shareholders dragged his partners to court over a N$23 million deal which saw some of the group’s shares sold to a local private equity fund manager.
EMG shareholder Dr Tshali Ithete, through his company Diversified Medical Investments, launched a court case in May seeking an order to reverse the sale of the shares which saw Eos Capital’s special purpose vehicle - Allegrow Fund - acquiring a minority stake in the group.
In 2020, according to court documents, EMG sold 510 shares valued at N$23.3 million to Allegrow - allegedly without following due procedures.
This comes after a rift developed between shareholders and a scramble for control of the medical facility ensued. The situation is so dire that shareholders have since dragged each other to court following counterclaims of fraud, maladministration and dubious sale of shares.
“Please be informed that the NaCC has taken note of media articles relating to the control of Ongwediva Medipark. The articles contain allegations that Erongo Medical Group controls Ongwediva Medipark and has done so since 2017,” wrote NaCC CEO Vitalis Ndalikokule last week.
In his letter to Erongo Medical Group (EMG) CEO Matthias Braune, Ndalikokule said the commission wants to establish whether changes in control over Ongwediva MediPark occurred, and if such changes amounted to a merger transaction as defined in the terms of the Competition Act.
The private healthcare group owns the Welwitschia Hospital in Walvis Bay and has interests in radiology and telemedicine, among other segments. It also runs Ongwediva Medipark as well as Medixx Occupational Health Services.
“In terms of Section 42(1) of the Act, a merger occurs when one or more undertakings directly or indirectly acquires or establishes direct or indirect control over the whole or part of the business of another undertaking.
“Mergers can occur in any manner and may include the sale of shares or any interest if it results in a change of control over an undertaking and falls within the ambit of the applicable merger thresholds,” he wrote.
Braune was given seven days to respond.
We want answers
A merger is notifiable to the commission if the value of the proposed merger is above the specified notification threshold of N$30 million for the combined annual turnover and assets of the merging undertakings, and N$15 million for the annual turnover or assets of the target undertaking.
According to Ndalikokule, Braune must provide the commission with an indication of how and when control over Ongwediva MediPark was acquired.
He also requested audited financial statements for the acquiring and the transferred undertaking as well as copies of any relevant agreements in relation to the change in or acquisition of control over Ongwediva MediPark.
Namibian Sun last year reported that tension is simmering within EMG stable after one of its shareholders dragged his partners to court over a N$23 million deal which saw some of the group’s shares sold to a local private equity fund manager.
EMG shareholder Dr Tshali Ithete, through his company Diversified Medical Investments, launched a court case in May seeking an order to reverse the sale of the shares which saw Eos Capital’s special purpose vehicle - Allegrow Fund - acquiring a minority stake in the group.
In 2020, according to court documents, EMG sold 510 shares valued at N$23.3 million to Allegrow - allegedly without following due procedures.
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