Stanchart sees potential in Choppies growth

Boitshepo Majube | Thursday March 27, 2014 12:15

 

Head of SCPE, Africa, Peter Baird who was recently joined to the Choppies board of directors as a non-executive director, stated recently at the group financial results that Choppies is their important client with great business and they intend to hold their stake for “at least 4-6 years”.  Baird said SCPE decided to invest in the retailer after seeing its potential.

Baird said Choppies is a great success story of entrepreneurship, job creation, and commitment to Africa’s economic potential.

“The company is one of Standard Chartered Bank’s valued clients, and this investment is an example of how the bank supports long-term growth,” he said.

He said they are excited to play a part in the next phase of Choppies’ growth.

On value addition to the retailer, Baird highlighted that as one of the big banks in the continent they would help Choppies as they have people on the ground. “Standard Chartered would provide market intelligence to Choppies, as we have CEO’s and other crucial staff members on the ground,” he said, adding that they would also help the retailer build relationships with other stakeholders. He revealed that they have in some instances already helped the retailer cement some important relationships with their suppliers.

Early this year Choppies welcomed the acquisition of 13 percent shares by Standard Chartered Private Equity (SCPE) arm, in a transaction that was believed to be the largest private equity in the history of Botswana. 

Choppies, Chief Executive Officer Ramachandran Ottappath told Mmegi that the move to acquire 13 percent (150,000,000 ordinary shares) by SCPE from Choppies has improved the company’s stature in the financial markets.

Ramachandran stated that it would also impact on the company shares, as it will give more liquidity to their shares. “It means there will be more shares in the public float,” he said.

He said for SCPE to acquire Choppies shares, they scrutinised the company thoroughly and saw that it is worth investing in it, and added that it has greatly improved the image of the company. He also explained that the investment by SCPE would improve Choppies stature in the financial field. “It has greatly boosted our stature in the financial field,” he said.       

SCPE invests in companies in need of expansion capital or acquisition finance, and in management buy-outs.