Diversified retail group, Sefalana has entered Lesotho market through a brownfield model, a development which has kept its regional push alive. Late yesterday (Thursday), the company announced that it has purchased a large cash and carry going concern which will trade under the banner, TFS Sefalana.
Group finance director, Mohamed Osman told shareholders that the said entity will traded under TFS Sefalana for up to one year after which Sefalana will become the only name, the brand will come to be known in the mountainous country. Osman is excited that the latest development has allowed the group to continue with its expansion within the region. Sefalana, which is quoted in the domestic stock exchange, is already trading in Namibia. It bought an existing group of supermarkets, Metro Cash and Carry Namibia after raising cash worth P255 million.
This time around the company also plans to raise P351 million to fund the latest acquisition. The funds will be raised through a Rights Offer. Osman has cautioned shareholders to exercise caution when dealing with its securities until further notice. The company, together with arch-rival, Choppies Enterprise Limited are the only known retail brands that are flying the country’s flag high in foreign lands. Sefalana, which has also assets in property, manufacturing and milling has announced ambitious plans to claim its retail top spot from Choppies, another listed retail goliath.
In Botswana, the company has also rolled out a number of stores, made some acquisitions and also made available in-house brands. In Lesotho, the company will battle for the same market with South African retail giants such as Shoprite and Pick n Pay. Sefalana also competes with them in Botswana.