CHOPPIES ENTERPRISES LIMITED - Acquisition of retail stores owned by Jwayelani Retail (Proprietary) Limited

Acquisition of retail stores owned by Jwayelani Retail (Proprietary) Limited

Choppies Enterprises Limited
(Registration number 2004/1681)
JSE share code: CHP
BSE share code: CHOPPIES
ISIN: BW0000001072
Tax reference number: C08710401018
(“Choppies” or the “Company”)

ACQUISITION OF RETAIL STORES OWNED BY JWAYELANI RETAIL (PROPRIETARY) LIMITED


Choppies shareholders are referred to the announcements released on 4 February 2016 regarding the
Company’s acquisition of retail stores owned by Jwayelani Retail (Proprietary) Limited (“the
acquisition”), following the approval of the Competition Commission on 29 January 2016, and the
completion of all remaining conditions.

Choppies is pleased to confirm the effective date of the acquisition, being 1 March 2016.

Jwayelani is a respected brand in KwaZulu-Natal and Eastern Cape provinces that has been in
operation for over 25 years. The acquisition broadens Choppies’ South African footprint to 61 stores,
and 170 stores across all markets, and will support further expansion across South Africa given the
scale benefits and additional logistical support infrastructure. The acquired stores will be rebranded
as “Choppies-Jwayelani”.

Mr. Ramachandran Ottapathu, Group CEO said:

“The acquisition offers a unique advantage to Choppies in its plans to expand across South Africa.
Jwayelani is known for its strong brand presence, proximity to the customer, and unparalleled
knowledge of their market, which makes for a natural fit within Choppies.”

The Jwayelani acquisition consists of 21 stores with a total of 19 600 square meters of retail space in
urban and semi-urban locations, with an additional 3 locations identified for expansion. The retail
space is supported by 1 distribution centre with capacity to support an additional 50 stores. Jwayelani
employs over 1 000 employees.

Mr. Ottapathu said:

“The Butchery component makes up 40% to 50% of contribution to revenue in any given store and
offers a high-value product line. Choppies is looking forward to integrating Jwayelani’s Butchery
value chain into its South African operations.”

Jwayelani generated revenues of over R1 billion in the year ended in December 2015 with a gross
profit margin of 20.37% and profit before tax margin of 2.84% for the period. Jwayelani gross profit
grew by 8.93% in the same period. Please note the figures are unaudited management accounts.

3 March 2016

Enquiries:
Choppies
Ram Ottapathu          +267 318 6657   ram@choppies.co.bw

Vidya Sanooj           +267 318 6657   vidya@choppies.co.bw
Instinctif Partners    +27 11 447 3030
Frederic Cornet        +27 11 050 7504
Pietman Roos           +27 72 360 5575


The Company’s primary listing is on the Botswana Stock Exchange and its secondary listing is on the
Johannesburg Stock Exchange.

BSE Sponsoring Broker
African Alliance Botswana Limited

JSE Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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