More liquidity for Choppies shares

Boitshepo Majube | Tuesday January 14, 2014 16:23

Choppies, CEO Ramachandran Ottappath told Business Today that the move to acquire 13% (150,000,000 ordinary shares) by SCPE from Choppies has improved the company's stature in the financial markets.  Ramachandran stated that it would also impact on the company shares, as it will give more liquidity to their equity.  'It means there will be more shares in the public float,' he said. 

He said for SCPE to acquire Choppies shares, they scrutinised the retail giant thoroughly and saw that it is worth investing in, and added that it has greatly improved the image of the company.

He also explained that the investment by SCPE would improve Choppies' financial standing.  'It has greatly boosted our stature in the financial field,' he said.       

SCPE invests in companies in need of expansion capital or acquisition finance, and in management buy-outs. 

The private equity arm focuses on companies whose principal operations and management are located in Asia, Africa or the Middle East.

It is an active partner that provides board-level strategic advice and access to international network of Standard Chartered Bank. Operating out of their Johannesburg and Lagos bases, SCPE Africa has investments of about $650m (P5,7 billion) in Nigeria, Tanzania, South Africa and Botswana. Ramachandran said Standard Chartered Bank has been a good financial partner to Choppies throughout the years. 

'As we continue our profitability growth across Southern Africa, this major investment will further strengthen that productive relationship, bringing additional bandwidth to our board, and better value to our stakeholders,' he said.

Choppies is Botswana's largest retail group listed in 2011 on the Botswana Stock Exchange through an initial public listing (IPO).  It has mooted expansions into other sub-Saharan African countries expected to yield positive results in the near future.

Head of SCPE Africa, Peter Baird said, Choppies is a great success story, in progress, of entrepreneurship, job creation, and commitment to the continent's economic potential.

'The company is one of Standard Chartered Bank's valued clients and this investment is an example of how the bank supports long-term growth, and lives the brand promise,' he said, adding that they are excited for their part in the next phase of Choppies' growth.