FORMER vice-president Phelekezela Mphoko’s Botswana-based business partners are demanding US$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.

-The Standard