Sefalana directors buy more shares

… splash almost P1m


The Managing Director (MD) of Sefalana Holdings Limited Chandra Chauhan and his Finance Director (FD) Mohammed Osman have splashed P 977 461.10 combined, personally buying more Sefalana shares, according to information from the Botswana Stock Exchange (BSE).

Chauhan made four transactions between 16 August and 20 August which totalled P780 283.65. He bought 55 437 shares at P8.95 thebe per share. Osman bought 22,031 at P8.95 per share on 19 August.

The top two Sefalana executives did not reveal reasons why they bought the shares, but Osman only confirmed the transaction. However, Sefalana’s good performance is said to be a magnet to investors, including the group’s own executive directors.

Sefalana, Botswana’s home grown Fast Moving Consumer Goods (FMCG) retailer, is making strides. For the year ended 30 April 2019, the group’s revenue was P5.3 billion, up 11 percent on the prior year. Gross profit was P340 million, up 15 percent on the prior corresponding period. Profit before tax was P259 million up 12 percent on the prior year.
The company itself has described the financials as its “best” in history. The revenue managed to exceed P5 billion for the first time in history while profit for the year was P198.6 million. Further, a final dividend of 27.5 thebe was paid to shareholders.

In terms of shareholder value, Sefalana – because of higher profits – pays more, which Head of Research at Motswedi Securities Garry Juma says attracts investors. MD Chauhan’s strategy is of cautious expansion. Sefalana operated a total of 51 stores in Botswana and a further 14 in Namibia, making a grand total of 65 stores.

“Sefalana is one store you cannot ignore,” Juma said. “They have been growing sustainably and have proven to investors that they are a trustworthy investment.”
Sefalana directors, especially the MD, are one of the largest shareholders. The recent transactions will up their stake in the company. Botswana Insurance Fund Management (BIFM) is the largest shareholder at 44. 7 percent (112 195 933 shares), followed by MVA Fund at 10 percent (25 083 138 shares).

BIFM holds the shares on behalf of the Botswana Public Officers Pension Fund (BPOPF). Further, Debswana Pension Fund (DPF) holds 5.92 percent or 14 851 705 shares while Chauhan has 12 871 200, the equivalent of 5.13 percent. His recent acquisition increased his shares to 12 926 637. Other major shareholders own less than 1 percent.