HomeNewsPick ‘n’ Pay, TM deal awaits approval

Pick ‘n’ Pay, TM deal awaits approval

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Competition and Tariff Commission (CTC) is still considering South Africa retail giant Pick ‘n’ Pay’s bid to increase its stake in TM supermarkets to 49%.

Meikles and Pick ‘n’ Pay early this year concluded negotiations for the retail giant to purchase a further 24% stake in TM supermakets.

CTC assistant director, Benjamin Chinhengo said the commission had received the documentation on the deal from Meikles three weeks ago.

“We have been handling it. Stakeholder consultations are being conducted on the deal. However, I don’t have the time on when we will be finishing this because I was out of office. I will have to find out from the officer-in-charge,” he said.

Meikles Limited finance director Onias Makamba said a regulatory approval from the CTC is stalling its plans to access $13 million from Pick ‘n’ Pay.

Makamba said the company has received regulatory approval from the Reserve Bank of Zimbabwe and the Ministry of Youth Development Indigenisation and Empowerment, to increase its stake and pave way for the recapitalisation of TM supermarkets.

“The $13 million required for the refurbishments of TM supermarkets is there, but there is still one hurdle left to be completed and get the money. That is the approval from the Competition and Tariff Commission,” he said.

He said the money will be used to refurbish all TM branches in the country including the Kamfinsa one which is going to be a Pick ‘n’ Pay branch.

“We are expecting the Kamfinsa branch to be complete by the first half of next year,” Makamba said.

In June this year the company said it was looking for $50 million dollars for the recapitalisation of the TM supermarkets and hotels.

Of that amount the company has secured $13 million for the Pick ‘n’ Pay deal and $6 million from the PTA Bank and is still looking for the remainder.

“We are looking for the remainder externally,”Makamba said.

The grocery chain presently operates 50 branches nationwide.

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