Public Hearing on the Acquisition of KFC Franchises in Botswana

Pursuant to section 58(1) of the Competition Act (Cap 46:09), the Competition Authority invites members of the public to a hearing in relation to the proposed sale of the business and sale of assets of VPB Propco (Pty) Ltd (in liquidation), QSR Food Company (Pty) Ltd (in liquidation), Boitumelo Dijo (Pty) Ltd (in liquidation) and Greenax (Pty) Ltd (in liquidation) (“the Target Enterprises”) by Bradleymore’s Holdings (Pty) Ltd (“Bradleymore’s”).

The hearing will be held on 19^th January 2018, at the Competition Authority Office on Plot 28, Matsitama Road, at 09:30hrs. The hearing will be held with each of the parties to the transaction and other interested parties, pursuant to section 58(3)(a) of the Competition Act.

The hearing is intended to allow the parties to the transaction to make verbal representations to the Authority with respect to the transaction as well as allow their competitors and the general public to express their views on the acquisition.

Furthermore, other interested parties not party to the proposed transaction will be afforded an opportunity to voluntarily submit to the Authority any document, affidavit, statement or other relevant information in respect of the proposed acquisition. Though not mandatory, it would be preferable for those attending to submit copies of what they intend to present to the Authority no later than 17^th January 2018.  

The Acquiring Enterprise, Bradleymore’s is a limited liability company incorporated in accordance with the laws of the Republic of Botswana. Bradleymore’s is a special purpose vehicle that was set up for purposes of the proposed transaction and, as such, is not involved in any form of activity. The Acquiring Enterprise is a joint venture between Vivo Energy Africa Holdings Limited (“Vivo Energy”), and Baobab Khulisani South Africa (Pty) Ltd (“Baobab Khulisani”) (through its wholly owned Botswana registered entity - Seynara (Pty) Ltd). Vivo Energy controls Vivo Energy Botswana (Pty) Ltd whilst Seynara does not directly or indirectly control any firm.

Vivo Energy through its network of Shell-branded retail service stations in Botswana is a marketer of various oil products including retail fuels, commercial fuels and lubricants. On the other hand, Baobab Khulisani, a South African KFC franchisee operates eleven (11) stores in South Africa.

The Acquiring Enterprise is acquiring the assets and the business of the Target Enterprises as a going concern from Nigel Dixon-Warren in his capacity as liquidator of the Target Enterprises. The business of the Target Enterprise is operated through three wholly owned subsidiaries of VPB Propco (Pty) Ltd (in liquidation) being Greenax (Pty) Ltd (in liquidation) (“Greenax”), QSR (Pty) Ltd (in liquidation) (“QSR”) and Boitumelo Dijo (Pty) Ltd (in liquidation) (“Boitumelo”).

The aforementioned subsidiaries operate twelve (12) KFC franchises in Botswana situated in the following areas: six (6) in South-East District; two (2) in North-East District; and one (1) in each of Southern (Kanye), Kweneng District (Molepolole), Ngamiland District (Maun), and Chobe District (Kasane).  

Any questions on the above-mentioned hearing may be directed to:-

Manager, Mergers and Monopolies, The Competition Authority, P/Bag 00101, Gaborone, Plot 28, Matsitama Road, Tel: 3934278 Fax: 3121013

Email: nomathemba.dladla@competitionauthority.co.bw