SA firm acquires CA Sales at P285m

Brian Benza
Staff Writer | Monday April 2, 2012 00:00

 

According to the financial Mail, PSG Chief Executive Officer Piet Mouton, confirmed the acquisition amount and added that the investment holding company is also looking for other acquisitions in Africa. The Botswana Competition Authority (CA) early this year gave a provisional nod to the takeover of Botswana's top distribution company.

The conditions were that the new entity will not use the exclusive contracts CA Sales has with manufacturers of certain goods and commodities to abuse its massive market power in Botswana. PSG consists of 35 underlying companies with a combined market capitalisation of R71 billion that operate across industries that include financial services, banking, agriculture, education, construction, manufacturing, mining and energy saving.

In a statement, the Authority says the two entities approached it seeking approval of a proposed takeover in which PSG sought to acquire the entire issued shares in CA Sales, one of Botswana's largest sales, merchandising, warehousing and distributors of fast moving goods and commodities.The JSE-listed PSG, which owns Capitec Bank in South Africa, is not active in the Botswana market while CA Sales is a dominant company in Botswana, distributing key brands like Unilever, Tiger Brands, Distell Botswana, Colgate Palmolive and GlaxoSmithKline.

The CA Sales Group, which boasts an annual turnover in excess of P1.5 billion, owns a fleet of 120 trucks that range from 4ton to 30ton rigs. CA Sales and Distribution, which employs over 1,200 staff and has warehouse facilities in Gaborone and Francistown, has a combined carrying capacity of over 45,000 tonnes of foodstuffs and household goods.Its recently opened P150 million warehouse in Gaborone is able to distribute to 400 serving points countrywide.The CA Group of Companies comprises CA Sales and Dafin Sales, which are the two sales and distribution arms of the Group, as well as warehousing services, Kalahari Sales and Winchester Properties.