A company jointly owned by Vivo Energy and a South African KFC Franchise operator has emerged as the winning bidder for KFC Botswana, bringing to an the end an 18 month-long liquidation process of the local fast food chain.
The KFC Botswana portfolio, which consists of 12 restaurants, was placed under liquidation in June 2016, after the company failed to service its debts and creditors led by FNBB filed for the company to be liquidated.
Mmegi Business yesterday established that Baobab Energy Botswana - a joint venture company between Vivo Energy and Baobab South Africa, will take control of the assets and operations of KFC Botswana from the liquidator, Nigel Dixon-Warren.
Following completion of the transaction, Baobab Energy Botswana plans to invest to grow the KFC business in Botswana and look to open new ones, including adding more restaurants to Shell service stations. Vivo Energy Botswana distributes and markets Shell-branded fuels and lubricants while Baobab South Africa operates 12 KFC restaurants in the Eastern Cape province.
Commenting on the transaction, Wayne Kingwill, managing director, Vivo Energy Botswana said: “Partnering with Baobab to acquire KFC Botswana makes perfect sense for Vivo Energy.
We understand that customers at our Shell service stations want more than just a fill up of fuel when they come to our sites and in recent years we have invested heavily in growing and developing our convenience retail business; including the addition of quick service restaurants at our service stations.
We have successfully added convenience and choice
Details of how much Baobab Energy has agreed to pay for the franchise were not made public, but creditors of KFC are owed about P80 million.
Amongst some of the largest creditors was FNBB, which was the lead petitioner for the company to be placed under liquidation over a P41 million debt. Other banks such as Stanbic and Barclays are owed various amounts as well. Franchise holder, Yum Restaurants was reportedly owed about P21 million comprising franchise, advertising and trading fees.
As the appointed liquidator, Dixon-Warren, KPMG Botswana concluded: “Given the challenges faced during the liquidation process, we are very pleased that we have been able to successfully conclude a transaction with Baobab Energy Botswana and we are confident that KFC Botswana will achieve new heights.”
Before it went into liquidation, the KFC Botswana business was run through four connected companies being VPB Propco, the franchise holder, QSR Food Company and Boitumelo Dijo, which amongst themselves held leases and trading licences for the 12 KFC outlets.
The fourth company, Greenax Limited, which was cited as the fourth respondent in the petition, only operated in-store point of sale machines and received cash from the 12 outlets.