Happiness Zengeni Business Editor
BOTSWANA Stock Exchange-listed Sefalana Holdings intends to buy starafrica corporation’s 33 percent stake in Tongaat Hullet in a deal that could be worth $6 million.
Sefalana is a holding company with interests in retail, manufacturing, property and vehicle sales. A source familiar with the transaction said starafrica received a “decent offer” from Sefalana and the parties seem to have agreed on various specifics of the deal.
“Talks are now at a delicate stage and I am hopeful for a positive outcome,” said the source.
In a telephone interview yesterday, Sefalana managing director Mr Chandra Chauham was reluctant to comment.
“I cannot talk about that transaction . . . you must contact starafrica,” he said.
However, Sefalana recently cautioned its shareholders that they were in negotiations with a third party within the region, which would see the group buying “another business in the region”.
“If successful the deal would significantly have an impact on the company’s securities and its value,” Mr Chauhan was quoted as saying.
It said the company would reveal more details with another circular “on or about the 31st of March”.
In a note to shareholders last week, starafrica said an offer had been received from the Botswana Stock Exchange-listed company interested in its Tongaat shareholding.
“A Botswana Stock Exchange-listed corporation has offered to purchase starafrica’s 33,3 percent shareholding in Tongaat Hulett Botswana valued at BWP 51,2m (about $5,8 million). It is anticipated that the above transactions will be completed and the proceeds from the sale received by April 30 2014,” said starafrica.
starafrica has also received an offer for its transport and logistics company, Bluestar Logistics, from Pioneer Corporations Africa. The proceeds from the disposal of Tongaat stake and Bluestar are earmarked for paying starafrica creditors.
Sefalana operates Sefalana Cash and Carry, Sefalana Hyper and the Shoppers brand.
In January 2013, Sefcash had three Hyper Stores, 25 cash and carry stores and 16 supermarket retail stores across the country. But it increased its market share by opening additional Shoppers supermarkets in Tonota and Gaborone West, reports say. It targets to reach 40 outlets in Botswana, the group said while expanding into Namibia through opening 12 fast moving consumer goods stores similar their current stores.
In December last year, Sefalana entered into an agreement which will enable the group to purchase the businesses conducted by Metcash Namibia, Metcash Trading Africa, Mr Mahomed Gathoo and Mr Shiraz Gathoo, subject to regulatory approvals.
The Gathoos operate the Metro Cash and Carry Namibia, a groceries and other consumer goods distribution business across Southern Africa. Sefalana said the completion of the P15 million deal would allow Sefalana entry into the Namibian market, thus expanding its foothold beyond Botswana and possibly generate more income.
Key shareholders in Sefalana are Botswana Public Officers Pension Fund (41 percent), Motor Vehicle Accident Fund (11 percent) and Debswana Pension Fund (6 percent).