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The Battle for Ownership and Control of the Choppies Zimbabwe Supermarket Chain – owned 51% by Nanavac Investments by the family of former Vice President Phelekezela Mphoko and 49% by Choppies Enterprises Limited of Botswana supported by former President Festus Mogae – Intensification this week, with Zimbabwean shareholders preparing to demobilize 50 Indian workers seconded to the local factory with 32 stores across the country.
By Nkululeko Sibanda
Mphoko warned that he would not accept a "Gupta". Hostile takeover style by Botswana shareholders headed by the chairman of the Mogae company and CEO Ramachandaran Ottapathu who holds 34.2% stake in the group.
Mphoko, who lost his position when the Former President Robert Mugabe was overthrown by the November Army and replaced by his then co-MP, Emmerson Mnangagwa, said the "illegal" seizure of the company would not tolerated and would be
"The law is very clear. We had a 51% stake from the beginning because the retail business is a reserved area under the law in Zimbabwe that may have changed, while protecting our rights in this specific area, "Mphoko said in a statement. interview yesterday. "Everything else is illegal. These guys are trying to gugu, but their Gupta theories and their approach will not be accepted and will not work. "
The Guptas are a wealthy South African family of Indian descent whose most notable members are the brothers Ajay, Atul and Rajesh" Tony "Gupta, who were involved in dubious cases and involved in allegations of corruption in South Africa during former president Jacob Zuma, the term of their benefactor.
While Mphoko vowed to dig, Choppies Enterprises said it would invoke petition clauses. In an interview this week, Ottapathu, known as Ram in the business community, said the multinational distribution group believes that it's time for the Mphokos to leave the company. for that they badume 100% ownership and control
"At a meeting of the board in 2014, the former vice president complained that the actions that 39% owned in Choppies, 7% were too small. His son (Siqokoqela) corrected him about it. "With everything that has happened and with the opinion of the shareholders, the situation is now ripe for taking control of the company because the laws of indigenization are no longer as they were in 2013, the shareholders plan to exercise their rights according to the agreements, which means to recall the 44%, while buying Siqokoqela on the remaining 7%. "
On the shareholding structure Ottapathu added, "We can not continue with the agreement by 51%, we agreed at the time that they would receive 7% to help us start business in Zimbabwe." always had dividends based on the 7% they actually hold. "
However, Mphoko said," They want to undermine the laws of Zimbabwe and we, the locals, are crazy. "The President (Mnangagwa) was clear on what policy and law are now on this issue, Mphoko said last week that Ram t He was trying to tie up with Mnangagwa and the government to review the shareholders 'agreement and other documents, insisting that his family was the largest shareholder in Choppies' operations in Zimbabwe.
Mphoko is a 25.5% shareholder in Nanavac, a vehicle he and his son Siqokoqela trained to do business in Zimbabwe. Siqokoqela also holds a 25.5% stake, bringing it to 51%. Choppies Enterprises holds the remaining 49%, although the "51%" was only agreed to circumvent the laws of indigenization under Mugabe. In reality, Mogae and his allies, including Ram, say that Mphoko received 7% for free
Ram said their agreement with "an option to buy" – the option to buy back shares – was signed on December 22, 2015. [19659006Lin31del'agreementstipule:"Onles51%ofthefamilyMphokoChoppiesdisposadadoptionofbuying44%thisqualitymeansthefamilyMphokoaura7%toontour"
by Choppies from the purchase option, a Sale will be concluded with respect to option shares under the following conditions: (1) the purchase price of the option shares payable to Siqokoqela Mphoko will be in the amount of 1. US $ (one US dollar) per option share; (2) All the benefits and risks inherent in the property from the option share will be transferred to Choppies on the date of exercise of the option to purchase; (3) Choppies will ensure that any action acquired by it under Clause 3 shall be held in treasury shares for the sole purpose of disposing of it to a native Zimbabwean as required by the law in force at the time. moment of disposition. "Last week, the Mphoko family announced that it had, along with Choppies Enterprises, secured a $ 20 million US bank loan in Botswana to fund the company, a ridiculous claim that Mphoko" can not get a loan even for a rand "
Mphoko insisted:" The law is very clear, the distribution sector remains reserved for locals. So, they can not be allowed to undermine the laws of the land when they wish. "
Siqokoqela escalated the fight with a letter to Senior Director of the Immigration Department Clemence Masango, saying that Nanavac will not extend work permits for 50 Zimbabwean Foreign Employees Choppies." However, he said that Nanavac would only get work permits for four Indian expatriates to identify.
"Please be informed that these Indian experts have successfully completed their mission of pbading knowledge to Nanavac employees." Investments and that Nanavac Investments will not extend their work permit, "says the letter.
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