Shareholders are advised that Pick ‘n Pay Retailers (Proprietary) Limited (“Pick ‘n Pay”) is investing US$13 million into TM Supermarkets (Private) Limited (“TM”) and in so doing Pick ‘n Pay is increasing its shareholding in TM from 25% to 49%. This investment by Pick ‘n Pay has received the approvals from the Reserve Banks of Zimbabwe and South Africa, the Ministry of Youth Development, Indigenisation and Empowerment, the Zimbabwe Investment Authority and the Competition and Tariff Commission. The Group would like to express its appreciation to all regulatory authorities for their assistance in this transaction.
TM will utilise this US$13 million investment to update and refurbish existing stores and the public will notice changes in TM’s supermarkets in the coming months. Pick ‘n Pay’s increased shareholding in TM will see TM accessing Pick ‘n Pay’s buying strength, where necessary, as it is TM’s intention to increase its local supply base. In time there will be the establishment of a number of franchise operations which will create employment opportunities. The TM brand will be retained as it is a key brand in the market though certain strategic stores will be re-branded Pick ‘n Pay. Together, both Pick ‘n Pay and Meikles will ensure that TM is adequately capitalised to fund its operations.
2 December 2011