RCL FOODS – ACQUISITION ANNOUNCEMENT
RCL shareholders are referred to the announcement released on SENS on Friday, 7 March 2014, wherein shareholders were advised that RCL, through one of its operating subsidiaries Vector Logistics (Pty) Ltd., had entered into an agreement to acquire a 49% shareholding in Senn Foods Logistics (Pty) Ltd. of Botswana, for P65.5 million (R79.9 million) (“the acquisition”).
The acquisition was subject to regulatory approvals in Botswana and South Africa, and RCL confirmed that the necessary approvals have been obtained and that the acquisition is unconditional. Senn Foods Logistics is the largest cold chain distribution business in Botswana and is involved in the distribution of dry, frozen and chilled foodstuffs. The business currently represents almost all of Vector”s principals in Botswana including Rainbow, McCain, I&J and Fry”s as well as QSR customers Chicken Licken, Nando”s, Spur and Wimpy.
The acquisition is in line with RCL”s growth aspirations into Africa and Vector’s long term strategy to extend its reach into other African countries and to offer world class logistics and sales solutions to existing and future partners in these countries.