The Standard reports that former vice-president Phelekezela Mphoko’s Botswana-based business partners are demanding US$94 million for him to take over control of Choppies’ local operations.
Mphoko and his son Siqokoqela insist they are the majority shareholders of Choppies Zimbabwe through their local investment vehicle, Nanavac, with 51%. However, the Botswana-headquartered business says the Mphokos only own 7% shareholding in Choppies. In a letter in The Standard’s possession to Mphoko’s business partners demanded US$94 million for the Mphokos to be given some controlling shares in the business, failure of which they would be elbowed out. The Mphokos were given a November 5 deadline to pay for the shares in terms of the July 24, 2013 clause 13 of the shareholders’ agreement entered into with the Botswana business. Part of the letter reads:
Please let us have proof of payment of the purchase price on receipt of which our clients will deliver to your clients share certificate together with a signed share transfer form made out in favour of your clients. Ours being a holder of a valid investment certificate issued in terms of the law and being a foreign currency entity will expect yours naturally to seek exchange approval to pay the sum due to it in Botswana.
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Choppies Zimbabwe is the Zimbabwean operation of Botswana Stock Exchange-listed supermarket retail chain Choppies. Choppies Zimbabwe is owned by Nanavac Investment (Pvt) Ltd which is itself owned 51% by Siqokoqela Mphoko (son to former Zimbabwe vice president Phelekezela Mphoko) to and 49% the Botswana stock... Read More About Choppies Zimbabwe