ALL retail shops formerly owned by local business mogul Raji Modi have been rebranded to Choppies following the takeover of the business by Botswana’s biggest retail firm Choppies Enterprises Limited.
Choppies took over Modi’s enterprises in October this year after he sold his entire Sai Enterprises (Pvt) Ltd to Nanavac Investment (Pvt) Ltd — in which Botswana Stock Exchange-listed Choppies has a 49% stake while local entrepreneur Siqokoqela Mphoko holds 51%.
It has not been ascertained how much Mphoko forked out for the 51% stake.
Investigations by Southern Eye Business revealed that 10 shops which were under Sai Enterprises (Pvt) Ltd — Bellevue SPAR, Nkulumane SPAR, Entumbane SPAR, City SPAR and Down Town SPAR — have been rebranded to Choppies as part of the deal.
Bellevue SPAR was regarded as the Sai Enterprises flagship.
Modi, who is now the managing director of the new business venture said the rebranding process is expected to be finalised this week adding that business operations had improved despite the harsh operating economic environment evidenced by the prevalent financial squeeze.
“All the shops have been rebranded to Choppies and business is now better than before,” Modi said.
“We are just finalising on few things.”
Modi said the deal was one of the biggest in the country although he could not be drawn into disclosing the actual amount involved in the transaction, adding that the business was projected to expand significantly next year.
Choppies is targeting opening 100 shops by end of next year with 20 of the outlets expected to be located in Bulawayo.
The company would be headquartered in Bulawayo and expects to list on the local bourse going forward.
The business transaction firmly confirms Choppies’ plans to expand into Zimbabwe, following its entry into South Africa three years ago.
According to media reports, the total consideration for the deal would be less than 5% of Choppies Enterprises Ltd’s market capitalisation and the settlement of the consideration would be done over a period of time as the takeover of the stores progresses.
Choppies has 63 stores in Botswana, 13 outlets in South Africa and is reportedly mulling plans to expand into Zambia and
Mozambique and other countries in sub-Saharan Africa in the near future.
Botswana’s largest retail group is chaired by the country’s former President Festus Mogae.