CHOPPIES ENTERPRISES LIMITED - Acquisition of Arizona Wholesalers and Butcheries and Withdrawal of Cautionary Announcement

Acquisition of Arizona Wholesalers and Butcheries and Withdrawal of Cautionary Announcement

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 Arizona Wholesalers and Butcheries and Withdrawal of Cautionary
Announcement

1. Introduction

Shareholders of Choppies Enterprises ('Choppies') are referred to the cautionary
announcement released on 6 September 2017, and the renewal of the cautionary
announcement on 18 October 2017, regarding the proposed acquisition of a number of retail
stores in Kwazulu-Natal.

The Board of Directors of Choppies is pleased to inform shareholders that the company has
concluded an agreement to purchase eight Arizona Wholesalers and Butcheries stores
('Arizona') located in KwaZulu-Natal, following approval from the Competition Commission of
South Africa on 1 November 2017.

In terms of the agreement Choppies will acquire Arizona as a going concern for the
consideration of R100 million and the value of the business’ inventory, effective 1 November
2017.

2. Acquisition of Arizona

2.1. Nature of Arizona business

Arizona Wholesalers and Butcheries started as an independent family-owned business in
1998 and expanded to eight retail outlets supplying groceries and butchery products in rural
KwaZulu-Natal. It operates in Nongoma, Eshowe, Jozini, Pongola, Mtubatuba, Hlabisa,
Melmoth and Ulundi.

The business has built a considerable footprint in traditionally underserved areas in KwaZulu-
Natal and employ more than 350 people and has nearly 13,000m2 operating space.

2.2. Rationale for the acquisition

Arizona has established a strong foothold in a key target market for Choppies and has built a
business with a solid foundation which would enable the business to achieve sustainable
growth. The business fits well with Choppies’ strategy of being a strong relevant provider of
consumer goods at affordable prices, and serving urban, semi-urban and rural areas with
products that offer value for money.

Ramchandran Ottapathu, CEO of Choppies commented: "We are delighted to announce the
addition of the Arizona stores to the Choppies group of stores. Their footprint in KwaZulu-Natal
complements our existing presence in the area. This transaction and the subsequent
synergies it will unlock, should ultimately result in our South African operations reaching
profitability over the medium term."

3. Withdrawal of Cautionary
Further to the cautionary announcement dated 6 September 2017 and the renewal of the
cautionary on 18 October 2017, shareholders are advised that they no longer need to exercise
caution when dealing in Choppies’ securities.


3 November 2017

Enquiries
Choppies:

Vidya Sanooj            +267 318 6657           vidya@choppiesbotswana.co.bw

H+K Strategies
Roz Thomas              +27 11 463 2198         roz.thomas@hkstrategies.com


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)

Corporate and legal advisors
Barclays Africa

PWC South Africa

Bowmans

NSG Attorneys

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