SA joint venture buys KFC Botswana
Leading South African oil company, Vivo Energy, in partnership with a South African KFC Franchisee, Baobab Khulisani South Africa (Pty) Ltd have purchased the liquidated KFC Botswana Franchise.
The two companies formed a joint venture company, Baobab Energy Botswana which will take control of the assets and operations of KFC Botswana, which are currently in liquidation. KFC Botswana is currently managed by the liquidator KPMG Botswana since June 2016.
According to a statement from Vivo Energy, The completion of this transaction is subject to legal agreements and regulatory approvals. “Baobab Energy Botswana plans to invest to grow the KFC business in Botswana and will both refresh and improve current KFC restaurants and look to open new ones, including adding more restaurants to Shell service stations” reads the statement.
The KFC Botswana portfolio consists of 12 restaurants, eight of which are in, or in the region of, Gaborone; two in Francistown (including one at the Shell service station in Francistown); one in Kasane; and one in Maun.
KFC Botswana franchise was operated and managed by four companies, VPB Propco (Proprietary) Limited, QSR Food Company (Proprietary) Limited, Boitumelo Dijo (Proprietary) Limited and Greenax (Proprietary) Limited.
These were placed under provisional liquidation by order of the High Court on 2 June 2016. Nigel Dixon-Warren was appointed as the provisional liquidator in the same order and the companies were placed into final liquidation on 30 August 2016.
Commenting on the transaction, Vivo Energy Botswana Managing Director, Wayne Kingwill said partnering with Baobab to acquire KFC Botswana makes perfect sense for Vivo Energy as the company has invested heavily in growing and developing the convenience retail business; including the addition of quick service restaurants in its service stations.
“We understand that customers at our Shell service stations want more than just a fill up of fuel when they come to our sites. We have successfully added convenience and choice for our customers so the introduction of KFC Botswana is a natural development,” said Kingwill.
Baobab South Africa operates 12 KFC restaurants in the Eastern Cape, South Africa and has a strong track record of success. It was awarded African KFC franchise of the year, operator of the year and service promise ambassador in 2016.
Baobab South Africa, Principal Operator, Grant Wheatley said they are looking forward to bringing KFC recipe for success to Botswana.
“Having enjoyed a successful partnership with KFC in South Africa over the past nine years, we are looking forward to bringing this recipe for success to KFC Botswana.
“Our first priority is ensuring we consistently provide our customers with the great KFC experience we are proud of, driving improvements through our passion for customer service and serving the great quality products customers in Botswana know and love,” he said.
He said all existing KFC Botswana employees will transfer to Baobab Energy Botswana as KFC is committed to supporting local employment.
As the appointed liquidator, Nigel Dixon-Warren, KPMG Botswana said they are pleased to conclude the transaction. “Given the challenges faced during the liquidation process, we are very pleased that we have been able to successfully conclude a transaction with Baobab Energy Botswana and we are confident that KFC Botswana will achieve new heights.”
However, the liquidator said despite difficult conditions to operate and manage the day to day operations of KFC Botswana since the date of liquidation with the intention of selling it as a going concern, the transaction is still subject to regulatory and other approvals.
