AR threaten to sue Hyphen, Govt over 24% equity purchase

Affirmative Repositioning (AR) have approached Hyphen Hydrogen Energy to demand that the government be granted a free 24% stake in the Hyphen green hydrogen project.

AR argues that the government’s participation, along with the allocation of resources, should exempt it from any additional financial obligations.

“It is further our instructions to demand, as we hereby do, that the said 24% stake be awarded to the government of the Republic of Namibia at zero costs,” lawyer Kadhila Amoomo wrote to Hyphen on behalf of AR.

Additionally, AR demands complete transparency in the negotiation proceedings, contractual formulations, and agreements, calling for their availability to the public or in parliament.
AR set a deadline of 15 July for Hyphen to respond to their demands. Failure to do so, Amoomo warned, will result in legal action being taken against both Hyphen and the Namibian government by the AR.

“Our client will also be unleashing and leading widespread protests against Hyphen Africa and the government of the Republic of Namibia, should the above concerns not be addressed to the satisfaction of our client,” Amoomo wrote.

This is as the government notified Hyphen that it will source funds through loan and grant agreements to buy the 24% equity earlier this month.

Green hydrogen commissioner James Mnyupe defended the 24% stake, saying the proposed equity participation at cost, as opposed to free equity or a profit share, has the advantage that it does not increase the cost of equity capital for investors.

“All else being equal, if Namibia had demanded a 24% free equity stake, incoming investors would have to generate a 33% higher return to achieve the same outcome, and consequently Namibia’s hydrogen projects would be more expensive, and less attractive to investors,” Mnyupe said.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.