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Zanu-PF's Raj Modi interested in Choppies acquisition
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Local trading firm Pin Tail Trading, which operates the Sai Mart retail chain, has expressed interest in acquiring Choppies Enterprises Limited's Zimbabwe operations. The leading supermarket chain recently announced plans to exit the Zimbabwean market, citing challenges in the formal retail sector.
Choppies, listed on both the Botswana Stock Exchange (BSE) and Johannesburg Stock Exchange (JSE), owns a 100% stake in Nanavac Investments (Pvt) Limited, trading as Choppies Zimbabwe. Since entering Zimbabwe in 2013 through the acquisition of Spar outlets, Choppies has grown its footprint to 30 stores across the country.
In a statement on Friday, Choppies confirmed discussions were underway for a potential cash sale of Nanavac's business operations.
Bulawayo businessman and Bulawayo South legislator, Raj Modi, who owns Pin Tail Trading and serves as Deputy Minister of Industry and Commerce, confirmed the company's interest.
"Yes, we are interested in the Possible Sale, but nothing has been finalized as yet," said Modi in an interview.
Pin Tail Trading currently operates six Sai Mart branches in Bulawayo and could expand significantly if the deal is concluded.
Choppies' decision to exit Zimbabwe is aligned with its strategy to focus on profitable retail ventures. The company has faced mounting challenges, including a significant shift toward the informal retail sector in Zimbabwe. Over the past two years, the formal retail sector has experienced up to a 30% decline in customer footfall, forcing Choppies to compete with informal traders.
"While we believe in the country's long-term viability, Choppies as a group needs more capital to support its Zimbabwean operations for extended periods and has already invested significant capital," the company said.
Choppies has cautioned shareholders that the sale remains uncertain as it is subject to regulatory approval, including clearance from the Zimbabwean Competition and Tariff Commission.
"There is no certainty at this stage that the discussions will lead to a formal transaction. Shareholders are advised to exercise caution when trading in Choppies shares until further announcements are made," the company stated.
The potential acquisition by Pin Tail Trading could breathe new life into the operations of the 30 Choppies stores in Zimbabwe, aligning with the firm's local market focus. However, industry observers note that the formal retail sector will continue to face challenges from the burgeoning informal market, which appeals to cost-sensitive consumers.
This development marks a significant moment for the Zimbabwean retail landscape, as the potential new ownership could redefine the trajectory of one of the country's major grocery retailers.
Choppies, listed on both the Botswana Stock Exchange (BSE) and Johannesburg Stock Exchange (JSE), owns a 100% stake in Nanavac Investments (Pvt) Limited, trading as Choppies Zimbabwe. Since entering Zimbabwe in 2013 through the acquisition of Spar outlets, Choppies has grown its footprint to 30 stores across the country.
In a statement on Friday, Choppies confirmed discussions were underway for a potential cash sale of Nanavac's business operations.
Bulawayo businessman and Bulawayo South legislator, Raj Modi, who owns Pin Tail Trading and serves as Deputy Minister of Industry and Commerce, confirmed the company's interest.
"Yes, we are interested in the Possible Sale, but nothing has been finalized as yet," said Modi in an interview.
Pin Tail Trading currently operates six Sai Mart branches in Bulawayo and could expand significantly if the deal is concluded.
Choppies' decision to exit Zimbabwe is aligned with its strategy to focus on profitable retail ventures. The company has faced mounting challenges, including a significant shift toward the informal retail sector in Zimbabwe. Over the past two years, the formal retail sector has experienced up to a 30% decline in customer footfall, forcing Choppies to compete with informal traders.
"While we believe in the country's long-term viability, Choppies as a group needs more capital to support its Zimbabwean operations for extended periods and has already invested significant capital," the company said.
Choppies has cautioned shareholders that the sale remains uncertain as it is subject to regulatory approval, including clearance from the Zimbabwean Competition and Tariff Commission.
"There is no certainty at this stage that the discussions will lead to a formal transaction. Shareholders are advised to exercise caution when trading in Choppies shares until further announcements are made," the company stated.
The potential acquisition by Pin Tail Trading could breathe new life into the operations of the 30 Choppies stores in Zimbabwe, aligning with the firm's local market focus. However, industry observers note that the formal retail sector will continue to face challenges from the burgeoning informal market, which appeals to cost-sensitive consumers.
This development marks a significant moment for the Zimbabwean retail landscape, as the potential new ownership could redefine the trajectory of one of the country's major grocery retailers.
Source - The Sunday News
