Further update to shareholders
Choppies Enterprises Limited
(Registration number 2004/1681)
BSEL share code: CHOPPIES
JSE share code: CHP
(“Choppies” or the “Company” and, together with its subsidiaries, the “Group”)
FURTHER UPDATE TO SHAREHOLDERS
1. Shareholders are referred to (i) the various announcements regarding the delay in the
publication of the Group’s audited annual financial statements for the year ended 30 June 2018
(the “2018 Financial Results”), the last of which was published on 5 March 2019, and (ii) the
related cautionary announcements.
2. As announced on 1 November 2018, the trading of the Company’s shares on both the Botswana
Stock Exchange Limited (“BSEL”) and Johannesburg Stock Exchange Limited (“JSE”) remains
suspended pending the Company’s publication of its 2018 Financial Results.
A. SUSPENSION OF THE CHIEF EXECUTIVE OFFICER
3. In accordance with the Listings Requirements of the BSEL and the JSE, the board of directors of
Choppies (“the Board”) hereby informs the Choppies shareholders and the general public that,
at a duly convened meeting of the Board held on 20 May 2019, the Board resolved to suspend
from duty the Chief Executive Officer of the Company, Mr Ramachandran Ottapathu.
4. The suspension of Mr Ottapathu takes effect from Wednesday 22 May 2019 and will subsist
until such date as the Board determines the action, if any, to be taken in implementation of the
recommendations made in the investigation reports that will follow the completion of the legal
and forensic investigations announced by the Company on 5 March 2019. The legal investigation
is anticipated to conclude by the end of May 2019 (having extended from the end of April 2019).
The forensic investigation is anticipated to conclude by the end of June 2019.
B. APPOINTMENT OF AN INTERIM ACTING CHIEF EXECUTIVE OFFICER AND REDFORD CAPITAL
5. Mr. Farouk Ismail, the current Deputy Chairman of the Board, will, with effect from 22 May
2019, assume the role of Interim Acting Chief Executive Officer.
C. APPOINTMENT OF REDFORD CAPITAL
6. The Board further informs the shareholders of Choppies and the public that Redford Capital
(“Redford”) has, with effect from 13 May 2019, been appointed to the role of ‘Chief
Restructuring Officer’ (“CRO”) of the Company. The role of the CRO will, in summary, entail
reviewing the Choppies business and identifying various action plans for implementation within
the business to improve it. Redford is a South Africa based firm with over 25 years’ experience
in providing business related services that include assisting its clients to resolve challenges and
meet strategic and operational objectives.
7. Redford is not a related party to Choppies (in terms of the BSEL Equity Listings Requirements).
These announcements are made for information purposes only.
The Company’s primary listing is on the BSEL and its secondary listing is on the JSE.
By Order of the Board
21 May 2019
BSEL Sponsoring Broker
AFRICAN ALLIANCE BOTSWANA LIMITED
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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