Choppies Distribution Centre (CDC), has warned the markets about its intention to acquire more shares in Kamoso Africa Group (KAG) aimed at making it a significant player in the southern African region.
“We have already submitted our application to the Competition Authority,” Ramachandran Ottapothu told Sunday Standard.
Choppies is gearing itself to acquire 76 percent of share in Kamoso— a company focused on manufacturing, supplying and distribution– which will possibly mobbing shares held by lapef 2Rmbv7 , a company registered in Mauritius holds 45.17 in the target company.
The other shareholder whose shares are likely to be acquired is Newshelf 1392 (Pty) Ltd registered in Botswana.
The remaining 24 percent are held by Botswana Development Corporation.
BDC said its investment in Kamoso is in a bid to aid the Corporation’s quest to build resilient supply chain in “food and health security in Botswana as well as driving import substitution by significantly ramping up the existing and growing manufacturing business”.
“BDC also had a view to leverage the networks of co-investors in taking the home-grown business to the regional market, a key milestone in Supporting the Corporation’s international expansion drive,” the Corporation told Sunday Standard.
CDC is the main supplier to Choppies—a company which is dual listed on the Botswana Stock Exchange (BSE) and Johannesburg Stock Exchange (JSE). Choppies operations are sprawled across the southern African region; Botswana, Namibia, Kenya, Mozambique and Zambia.
While Kamoso is also involved in raft of businesses from food, building materials rice and spice packaging, among others things, across the southern African region, spearheaded from its Gaborone Block 3, headquarters.
Meanwhile, Competition Authority confirmed that the proposed acquisition is being considered.
And observers indicated that the move is “not expected to affected the market landscape since they are buying from a company they already have an interest in.”
“It is not like they are buying a rival. This is different because they are buying from the company they already have an interest in,” an observer said.
