Erongo RED proposes Walvis Bay sells its shares

THE board of directors of Erongo RED is proposing that the Walvis Bay municipality should offer its shares in Erongo RED to the remaining shareholders.

Erongo RED sent out a press release yesterday, saying that the board held a special meeting yesterday to consider Walvis Bay’s decision to withdraw from Erongo RED.It said alternatively, the remaining shareholders would be given the opportunity to make an offer to Walvis Bay for acquiring these shares in proportion to their existing shareholding.A special shareholders’ meeting to discuss these matters is scheduled to take place early February 2011.As far as the board is concerned though, the withdrawal of the municipality from the RED does not affect the day-to-day operations of the company.Walvis Bay, being the majority shareholder with 50 per cent shares, announced its withdrawal as a shareholder from Erongo RED on October 26.Mayor Uilika Nambahu said residents and businesses had inundated her office with complaints about excessive electricity tariffs.She said the council had expressed concern about unaffordable power tariffs to various authorities over the past few years, ‘but the response to this approach has not been very positive’.Most of the other shareholders empathised with Walvis Bay, agreeing that there were problems with Erongo RED, but stating that Walvis Bay could have first ‘come to the table before making hasty decisions’.The other shareholders are Swakopmund (28%), Henties Bay (5%), Arandis (2%), Usakos (1%), Karibib, Omaruru and Uis (0,35%) and the Erongo Regional Council (0,32%).

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