Friday, September 25, 2020

Shoprite wants to acquire OK Zimbabwe

SHOPRITE Holdings Limited, South Africa’s largest grocery chain, is said to have entered into negotiations with OK Zimbabwe to acquire a controlling stake in the Zimbabwe Stock Exchange-listed retail counter.

OK Zimbabwe is the country’s biggest retail company, with supermarkets in every city and town.

The Johannesburg Stock Exchange-listed company first entered Zimbabwe in November 2000 with the opening of a Shoprite outlet in Bulawayo, the only branch in the country.

Shoprite chief executive, Whitey Basson, said: “Negotiations are still at preliminary stages and the retail group was looking at expanding into the region.”

South African investors have been making inroads into Zimbabwe following the restoration of investment confidence ushered by the inclusive Government.

Another South African grocery shop, Mr Price, has already established branches in Harare following the rebound of the country’s retail sector.

This week, OK Zimbabwe issued a statement advising shareholders to exercise caution and to consult their professional advisors in dealing with their shares in the company.

“OK Zimbabwe Limited advises its shareholders that the company has entered into negotiations which, if concluded, will have a significant impact on its business,” read part of the statement.

Zimbabwe’s economy has started to register positive growth after years of successive negative growth, with indications that it recorded a growth rate of 1, 8 percent during the first quarter of this year.

This development has attracted a number of regional and international investors to invest in the fast growing sectors.
With the South African economy reported to have contracted for the third quarter in succession between April and June, the move could be a strategy by South Africans to flight their investment to potential Zimbabwean operations.

Shoprite Holdings Limited is an investment holdings company that, through its subsidiaries, constitutes a fast moving consumer goods retail operation on the African continent.

It owns and operates Shoprite, Checkers, Checkers Hyper, Usave, MediRite , OK Furniture, House & Home, Power Express, Hungry Lion, OK Foods, OK Grocer, OK MiniMark, Sentra and Value, and Megasave.

The Shoprite Group currently trades with 1 068 corporate and 275 franchise outlets in 17 countries across Africa, bringing the total number of stores in the group to 1 343.

Shoprite is in Uganda, Zambia, Nigeria, Tanzania, Mozambique, Mauritius, Malawi, Madagascar, Ghana and Angola. Shoprite Group started in 1979 with the purchase of a chain of eight supermarkets for R1 million.

OK Zimbabwe de-merged from Delta in September 2001 and has emerged as one of the leading retail supermarket chains in the country.

RELATED STORIES

Read this week's paper

Masisi creates his own “deep state”?

The government enclave is discussing a new law that will expand the president’s overreach and make it easier for the Directorate of...