The Zimbabwean and regional franchise operator of the Nando’s, Steers and Mugg & Bean counters has exited the Democratic Republic of Congo (DRC) due to operational risks although profits attributable to shareholders have shot up by 107 percent to $14.2 million (nearly R202m) in spite of difficulties occasioned by elections in Zimbabwe and Kenya.
Simbisa Brands also revealed that it had postponed its planned listing on London’s AIM market and also delayed the acquisition of Foodfund. Even though the board of the company in March, approved the acquisition of Foodfund and list in London.
Shareholders are advised that the parties to the sale and purchase agreement for Foodfund have agreed that the acquisition as currently structured be changed due to the postponement of the proposed secondary listing,” Adiel Chinake, the non-executive chairman of Simbisa, said yesterday.
Simbisa spent as much as $11.1m, mainly on expansion in Zimbabwe and Kenya.
Despite the setbacks, which saw it move out of the DRC and delay acquisition of Foodfund, Simbisa Brands has lined up other expansion projects, such as focusing on strengthening its casual restaurant category with the acquisition of Mugg & Bean and Ocean Basket in Zimbabwe and Zambia.
– BUSINESS REPORT