Sefalana enters Australian market

SHARE   |   Wednesday, 06 May 2020   |   By Ricardo Kanono
Chandra Chauhan, Sefalana Group Managing Director Chandra Chauhan, Sefalana Group Managing Director

A cautionary announcement and subsequent updates were issued since 28 October 2019, whereby Shareholders of Sefalana Holding Company Limited were advised that the Company has entered into negotiations with a third party outside Botswana, which if successfully concluded, and subject to relevant regulatory approval, will result in a transaction that might have an impact on the price of the Company’s shares. The Board is very pleased to report that in April 2020 the Group entered into an agreement to purchase 40% of the share capital of an Australian business that operates in the Fast Moving Consumer Goods sector.

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This Australian business (Seasons Group) consists of a chain of seven supermarkets in the Brisbane area. This business is controlled by a consortium of shareholders, many of whom are also consortium members in the South African business in which Sefalana has a preference share interest. Total purchase consideration for Sefalana’s investment in Seasons Group amounts to AUD 9.9 million (P74 million), and is considered its fair value. The effective date of investment is expected to be 8 May 2020. All relevant regulatory approvals have been obtained. This investment will be treated as an investment in an associate, in which Sefalana exerts significant influence, and therefore will be equity accounted. Sefalana entered into this agreement in order to pursue its Group strategy to diversify its income stream and foreign exchange exposure. Withdrawal of Cautionary By virtue of the fact that the particulars relating to this Transaction have now been completed and announced, the Cautionary is hereby withdrawn.  [bse.co.bw]



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