Former vice-president Phelekezela Mphoko’s Botswana-based
business partners are demanding $94 million for them to allow him to take
over control of supermarket giant Choppies’ local operations.
Mphoko’s family is engaged a nasty fight for control of the
supermarket chain with their Botswana-registered Choppies Distribution Centre
(Proprietary) Limited business partners fronted by former president Festus
Mogae.
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.
The Botswana headquartered business — in a letter in the
possession of The Standard to Mphoko’s lawyers Mathonsi Ncube Law Chambers and
their Nanavac Investment vehicle dated October 20, 2018 — demanded US$94
million for the Mphokos to be given some controlling shares in the business,
failure of which they would be elbowed out.
They said the money “represents a multiple of 12 times
Nanavac earnings before interest, tax, depreciation and amortisation and
extrapolated to annual amount to Nanavac’s latest financial statements for its
quarter ending 30 September 2018”.
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.
“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,”
the letter added.
“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.”
Mphoko’s lawyer Welshman Ncube was unreachable for comment
as his mobile phone rang unanswered.
The Choppies boardroom war has spilled into the High Court
with the Botswana-headquartered company seeking to bar the Mphoko family from
interfering with operations of the business.
The High Court is yet to decide on the matter.
However, in the latest correspondence, Mphoko’s family was
warned that failure to pay the US$94 million would result in them being elbowed
out of the business.
Mphoko’s son Siqokoqela and his wife Nomagugu were recently
dragged to court on charges of interfering with the operations of Choppies
Distribution Centre and Choppies Enterprises.
This followed accusations that they swindled the businesses
of a combined $80 000.
Last week, Botswana-based Choppies group CEO Ottapath
Ramachandran wrote a memo to Choppies threatening to dismiss any employee who
deals with the Mphokos.
Mphoko’s lawyers, however, said Ramachandran was offside as
the matter was yet to be settled at the courts. Standard
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