Wednesday, June 12, 2024

SA firm to acquire 49% stake in Derek Brink’s Senn Foods

Local business magnate Derek Brink, one of the main players in Botswana’s poultry industry, is set to sell part of his stake in Senn Food to a South African company, RCL Food for nothing less than P70 million.

Under the proposed merger, RCL Food which has operations in South Africa and Zambia, will through its subsidiary, Vector Logistics acquire 49 percent of issued share capital in Senn Foods Logistics.
Currently Senn Foods Logistics is owned 61 percent by Derek Brink Holdings and 39 percent by Rita Brink Holdings.

However fresh information passed on to this Sunday Standard indicate that the two parties, Senn Foods and RCL Food have agreed to merge, a transaction that is subject to approval of the Competition Authority.

It has also emerged that the two have agreed that post-merger, the two companies owned by the Brinks will remain with 31 percent and 20 percent shareholding, respectively, in Senn Foods Logistics.

RCL Foods Limited is engaged in consumer focused food business, while Vector Logistics is a specialised logistics service provider for the food industry in Southern Africa providing integrated logistics to retail, wholesale and food service sectors.

RCL Foods is currently supplying stock from South Africa to Senn Foods Logistics in Botswana for distribution throughout the country through Vector Logistics.

The company changed its legal name from “Rainbow Chicken Limited” to “RCL Foods Limited” in August last year and went further to acquire TSB Sugar in January 2014 this year.

The Johannesburg Stock Exchange quoted company began as the holding company of Rainbow and Vector. However as part of its strategic focus on building a diversified food business of scale with compelling consumer brands in sub-Saharan Africa, the Group last year acquired Foodcorp.

It has also partnered with Zambeef Products of Zambia in respect of a Zambian chicken broiler business and the establishment of a broiler parent stock rearing, laying and hatching operation. Meanwhile the Competition Authority has since confirmed that the two companies, Senn Foods and Vector Logistics have notified it of their intention to merge.

“Pursuant to section 56(1) of the Competition Act (Cap 46:09), the Competition Authority has received a merger notification between Vector Logistics (Pty) Ltd and Senn Foods Logistics (Pty) Ltd.”, a confirmation statement from the Director of Mergers and Monopolies at the Competition Authority read in part.

The target enterprise, Senn Foods Logistics is incorporated under the Laws of the Republic of Botswana and is a wholesaler and distributor of chilled, frozen and ambient products.

According to section 57(3), of the Competition Act, “any person, including a third party not a party to the proposed merger, may voluntarily submit to the inspector or the Authority any document, affidavit, statement or other relevant information in respect of a proposed merger”.

The Competition Authority therefore says it seeks any stakeholder views for or against the proposed merger, which may be sent within 10 days from date of the publication.


Read this week's paper