(HERALD) OK, Shoprite talks still on
OK, Shoprite talks still onBusiness Reporter
OK Zimbabwe Limited has indicated that negotiations with South Africa’s largest supermarket chain Shoprite, which were reported to have collapsed two weeks ago, are still ongoing.
In a statement to shareholders last week, following the news of the collapse of the deal, OK Zimbabwe said negotiations are still in progress.
"OK Zimbabwe Limited advises its shareholders that negotiations are still in progress.
"Shareholders are accordingly advised to continue exercising caution and consult their professional advisors in dealing with their shares in the company".
The South African retail giant had said they were pulling out of the R167 million deal to buy stake in OK Zimbabwe citing political reasons.
But insiders say the parties could not agree on the price for the second largest retail group in the country.
Shoprite executive director Brian Weyers had said they were no longer pursuing further investment opportunities in Zimbabwe in the short to medium term citing socio-economic and political uncertainty.
"Due to the current socio-economic and political uncertainty in Zimbabwe, Shoprite has decided not to engage in further investment opportunities in that country," he was quoted as saying.
Shoprite, which posted a 27 percent jump in profit in the year ending June, operates 102 stores in 16 countries outside of South Africa, including a grocery outlet in Bulawayo that was opened in 2005.
Shoprite said in August that it was "considering" buying businesses in Zimbabwe to expand its operations to the rest of the continent.
It has been holding behind-the-scenes negotiations with OK Zimbabwe with the intention of taking over the retailer.
The South African retailer had gone as far as sending its company executives to tour the local retailer’s branches as part of familiarising with its operations.
Whilst Shoprite continues pondering whether to invest in Zimbabwe or not another South African retail group, Pick n’ Pay, is planing to re-invest in TM Supermarkets.
The group is just waiting for a settlement in a shareholder dispute in Kingdom Meikles Ltd (KML).
Pick n’ Pay holds a 25 percent stake in TM Supermarkets, the largest retail chain in Zimbabwe.
Pick n’ Pay is said to be quite anxious to extend their investment in Zimbabwe. They want to rejuvenate the stores, starting with the equipment, but they did not want to go ahead until the KML saga was solved.
Pick n’ Pay chief executive officer Mr Nick Badminton confirmed discussing with Meikles about investing more in TM.
Labels: OK ZIMBABWE, RETAIL, SHOPRITE
posted by MrK @ 8:08 PM
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