BOTSWANA – Sefalana Holding Company Limited, one of Botswana’s largest retail outfit has entered into an agreement with Australian based company, Seasons Group to acquire 40% stake in the company for P74 million (US$6.1m).
Seasons Group operates in the Fast Moving Consumer Goods (FMCG) sector with a chain of seven supermarkets in Australia’s capital, Brisbane.
It 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.
A cautionary announcement and subsequent updates were issued since 28 October 2019, whereby Shareholders of Sefalana Holding Limited were advised that the Company had entered into negotiations with a third party outside Botswana which would boost the company’s earnings.
“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,”stated Mr. Mohamed Osman, the Group’s Finance Director.
Sefalana entered into the agreement with Seasons Group in order to pursue its Group strategy to diversify its income stream and foreign exchange exposure.
The company first operated outside Botswana in 2014 when they extended their business into neighbouring Namibia opening their first store in Katima Mulilo in January 2014.
This was also followed by other purchase in Namibia such as the Metro Group and Swakopmund. According to the company’s website they are still in constant lookout in Namibia as they work towards their medium-term target of 20 stores across in Namibia.
The company has also spread its investment to Lesotho in 2016 as they entered the country’s market through a takeover of the country’s largest distribution and Logistics Company, TFS Wholesalers, Distribution and Logistics in Maseru.
In addition to having operations in Botswana, Namibia and Lesotho, the company also has interest in Zambia and South Africa.