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Mphoko to lose all Choppies shares

by Mandla Ndlovu
10 Dec 2018 at 09:59hrs | Views
Former vice President Phelekezela Mphoko and his son Siqokoqela Mphoko are bound to lose all the shares they hold in  Choppies Zimbabwe if they continue fighting their Botswana partners, we can reveal.

In a letter written to by the Botswana based CEO of Choppies Enterprises Ramachandran Ottapathu, it is alleged that the Mphoko Family only 7% of the shareholding and the rest of the 44% was given to them so a fulfill the indigenisation laws of the country.

"Mphokos were given the 51% shares in an agreement which allows us to buy back the shares as and whenever we want as part of efforts to comply with the law. We gave them the shares on paper. Their 7% free carry shares was a way of thanking them for facilitating that we set up business in Zimbabwe." Ottapathu said.

He further reiterated that the agreement they said with the Mphokos allow them to withdraw the 44% allotted to the Mphokos at any time they want to and that the other 7% shares can be bought back at US$1 per share.

"The other 44% shares were allotted to them (the Mphokos) to add to the 7% free carry shares to make it 51%. According to the shareholder agreement that was signed to facilitate the setting up of the business under Zimbabwean law at the time, the 44% shares can be called back at any minute at no cost to Choppies Enterprises, thus leaving Mphokos with their 7% share.

"The 7% free carry shares can be bought back by Choppies Enterprises at US$1 per share in the event that we want Mphokos out of the business altogether."

Ottapathu further alleged that the Mphokos have been getting dividends equal to the 7% shareholding they hold and not the 51%.

"For the record, Siqokoqela Mphoko and his father, who are shareholders of Nanavac, have all along been getting dividends through their bank accounts for the 7% shares they hold and not the 51%. We have proof of transfer and we can furnish you if you so wish."

In his letter Ottapathu says he documentation to prove that the Mphoko family never invested any money into setting up of the business in Zimbabwe but they (Botswana partners)  are the ones who brought in $25 million from Barclays Bank of Botswana, the underwriters of the funding, for the setting up of Choppies operations in Zimbabwe.

Mphokos have been involved in a nasty fight with their Botswana partners in a bid to defend the 51% shareholding of  Choppies Zimbabwe which they hold.

Mphoko's son Siqokoqela and his wife Nomagugu were recently dragged to court on charges of interfering with the operations of Choppies Distribution Centre and Choppies Enterprises. This followed accusations that they swindled the businesses of a combined $80 000.

Siqokoqela is back in jail after being accused by court officials of flouting bail conditions.

Source - Byo24News