Choppies settles shareholder dispute in Zimbabwe

Choppies and the family of Mphoko had a wrangle over shareholding disputes, with the Botswana firm saying it had majority control of the unit while the Mphokos said they had control.

Officials in Gaborone had said Mphoko was given the stake to enable the company to circumvent indigenisation requirements under former leader Robert Mugabe, who demanded that foreign companies be majority-owned by black Zimbabweans. Choppies had become a key player in the Zimbabwean retail scene, where it competes against bigger operators such as OK Zimbabwe, Pick n Pay and Spar, among others.

Choppies last week renewed its cautionary over delays in publishing its financials. It said in the latest cautionary note that “the company is still progressing the matters… regarding the delay in the publication of the financial results” for the year to the end of June 30, 2018.

Sources in Zimbabwe and Botswana disclosed that Mphoko and Choppies had reached an agreement to avoid further turmoil at a time when Zimbabwe is at the peak of an economic crisis.. Choppies outlets in Bulawayo and Harare were lraided last week during the #Shutdown Zimbabwe protest over fuel price increases.

“They reached an agreement and Choppies will pay the Mphoko family under a settlement that puts this whole issue to rest,” said one corporate lawyer, who declined to be named.

Choppies stores in Botswana and South Africa continue to remain suspended after the company delayed its financials, which were due in September. This year, Choppies escaped hefty fines and penalties from the Botswana bourse, which determined that already suspended stocks would not be subject to new punishments for differed listings.

“There are listing rules,” said Botswana Stock Exchange chief executive Thapelo Tsheole earlier this month. “It is an international practice, so when I suspend Choppies for a few months, don’t think I am being lenient on it.”

The challenges have been increasing for Choppies since its chief executive, Sanooj Pullarote, quit the company due to its failure to publish its financials.