Namas to buy stake in Selco

THE Nama Traditional Authority is negotiating with JSE-listed power distribution group Southern Electricity Co (Selco) to buy a stake in the company, Business Day reported yesterday.

This is part of the company’s efforts to be a key player in the restructuring of Namibia’s electricity supply industry.Selco is positioning itself to take advantage of the Namibian Government’s restructuring of the electricity supply industry.Namibia is merging the electricity networks of all the local authorities into viable distribution companies. The move resembles South Africa’s own restructuring of the electricity distribution industry.Announcing its results for the year to June, Selco said that its Namibian business, which it said was the nucleus of the group, planned to form a regional electricity distributor in southern Namibia. Selco’s turnover increased 23,6 per cent and gross profit was up 27 per cent. Earnings before interest and tax was, however, down from the previous year’s R3 million to R1,7 million.Profit after tax increased to R1,1 million from the previous year’s loss of R525 000. Selco said bad debt and stock losses were down 52,9 per cent and 15,5 per cent respectively.Earnings per share improved to 2,01c from a loss of 96c per share last year. – Business Day