Choppies to Conclude sale of SA Subsidiary
- Last hurdle to sale overcome
- Both BSE and JSE listings of Choppies suspended in the meantime
The sale of the South African subsidiary of troubled retail giant, Choppies Enterprises Limited, will be concluded soon because the last outstanding condition precedent to its disposal has been fulfilled, The Botswana Gazette has established
The company advised that on 25 February 2020, the Competition Commission of South Africa issued a Merger Clearance Certificate in which it unconditionally approved the acquisition by Kind Investment (Pty) Limited of all the shares held by the company in and loan accounts advanced by the company to each of its South African subsidiaries .
The Choppies board of directors said all the conditions precedents to the disposal were fulfilled as of Monday, 02 March 2020.
“In terms of the agreement for the purchase and sale of the sale equity concluded between the company and Kind Investment (Pty) Limited, delivery, ownership of and all risk in and all benefit accruing to the sale equity will take place on the first business day of the month immediately following the month in which the fulfillment date occurs, which is Monday, 02 March 2020,” the board announced.
“The Choppies board of directors said all the conditions precedents to the disposal were fulfilled as of Monday, 02 March 2020”
“Pursuant to the underwriting by the company of negative equity value in its South African subsidiaries, Choppies said it is for the company (through its sales agent, Redford Capital ) and the purchaser to now take action to agree the value of the assets including stock in trade and the liabilities of the South African subsidiaries of the company, to determine the amount payable by the company, subject to a maximum of R150,000,000 in not more than fifteen equal monthly installments, provided that each installment is not less than R10,000,000, commencing from the month following the effective date, which is April 2020.
“The company’s primary listing is on the Botswana Stock Exchange Limited (BSEL) and its secondary listing is on the Johannesburg Stock Exchange (JSE). The listings on both exchanges are suspended.”