| Fri 29 Nov 2024, 10:30 | | CHOPPIES ENTERPRISES LIMITED - Cautionary announcement |
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Cautionary announcement
CHOPPIES ENTERPRISES LIMITED
(Incorporated in the Republic of Botswana)
Registration number BW00001142508
ISIN:BW0000001072
BSE SHARE CODE: CHOP-EQO
JSE SHARE CODE: CHP
Tax Reference Number: C08710401018
("Choppies" or the "Company")
CAUTIONARY ANNOUNCEMENT
The Listings Requirements of the Botswana Stock Exchange ("BSE") require the Company to
announce any circumstances or events that have or are likely to have a material effect on market
activity or the price or value or trading of the Company's securities.
The board of directors of Choppies ("Board") hereby advises all shareholders that the Company
has entered into discussions regarding a possible sale of the business operations of Nanavac
(Pty) Ltd trading as Choppies Zimbabwe for cash ("Possible Sale"), which, if successfully
concluded, could have an impact on the Company's share price. Choppies Zimbabwe is wholly
owned by the Company and is a grocery retailer with 30 stores in Zimbabwe.
The Possible Sale, which is subject to certain conditions and regulatory approval, is aligned to the
strategic intent of Choppies to focus on profitable retail.
In Zimbabwe, over the last two years, there has been a significant shift to the informal retail sector,
leaving the formal retail sector to battle a reduction of up to 30% in footfall and having to compete
with the informal sector.
While we believe in the country's long-term viability, Choppies as a group needs more capital to
support its Zimbabwean operations for extended periods and has already invested significant
capital to support the operations.
Due to the factors mentioned above we have decided to exit the country.
Shareholders are cautioned that there is no certainty at this stage that the discussions will lead to
a formal transaction, and approval from the Zimbabwean Competition and Tariff Commission is
required.
Accordingly, shareholders are advised to exercise caution when trading in their Choppies shares
until a further announcement is made.
The Company has a primary listing on the BSE and a secondary listing on the JSE.
29 November 2024
BSE Sponsoring Broker JSE Sponsor
Motswedi Securities (Pty) Ltd PSG Capital
Date: 29-11-2024 10:30:00
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