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Home » News » Business » Pomp as CA Sales lists

Pomp as CA Sales lists

Publishing Date : 13 November, 2017

Author : REARABILWE RAMAPHANE

Fast Moving Consumer Goods (FMCG) distributor, CA Sales officially listed on the Botswana Stock Exchange (BSE) this Thursday, at exactly 0950 BSE Chief Executive Officer Thapelo Tsheole and CA Sales CEO Mr. Frans Britz, rang the bell to mark a watershed moment in the company’s history - listing on the Domestic Main Board of BSE, one of the stable and significantly growing stock markets in Africa.


According to the CA board, 376 IPO applications totaling to 146 191 572 shares were received from invited investors and the public by 1st November 2017 for the available 136 112 994 ordinary shares of P3.45 each on offer. “The successful public applicants will be allotted ordinary shares equal to their applications, thus they will receive the number of ordinary shares applied for in full. The invited investors will receive a pro-rata allocation of their application”


BSE CEO, Tsheole says the Stock Exchange outperformed its target of attracting two companies this year after listing Australian Minergy, Get Bucks amongst other companies, and now CA Sales. “We have to thank the CA Sales board, they could have easily went for instance to the Johannesburg Stock Exchange (JSE), but they chose the BSE because they have confidence in our stable economy and its prospects for growth.”


Tsheole revealed that the BSE will in a few months list several other multinational corporations of global repute. The chairman of CA Sales, Mr. Johan Holtzhausen commended the BSE for high level of professionalism and competence. “When we began this process of listing the BSE team proficiency and level of seriousness and world standard ethics & etiquette was so heartwarming,” he said.


Holtzhausen added that CA Sales was a Southern African company with total employees of around 8000, with 1500 of them being in Botswana. “We have a turnover of P2 billion and we thank our suppliers, retailers and all stakeholders as we embark on continued journey of expansion  and  ensuring  growth in our  share value to give our investors return of investment,”  he said.


The current shareholding of CA Sales now stands at PSG Africa Holdings (Proprietary) Limited: 214 057 200 shares which is 51%; Export Marketing Investments (Proprietary) Limited holds 42 200 690 shares which translates to 10.1%; while renowned and one of the founders of CA Sales, Jagdish Natwarlal Shah now owns 10 739 190 shares , which is 2.6%. It is reported that Shah pocketed over P30 million from the listing.  Bielkor Beleggings (Proprietary) Limited, 8 587 600 shares 2% and Repassen 21 (Proprietary) Limited controls 4 097 940 shares or 1% and the same applies to Rose Bridge 15 (Proprietary) Limited. The Public as defined in the BSE Listing requirements owns 136 112 994 shares which is 32.3%.


The company has appointed to its board of non-executive directors the Chief Executive Officer of Bona Life and shrewd industry leader, Reginah Sikalesele-Vaka as well as former Debswana Managing Director, Blackie Marole.
Vaka is former Chairperson of the BSE Main Committee.
When officiating at the listing celebration at the CA Sales offices the Vice President Mokgweetsi Masisi said it was worth noting that Botswana’s economy was challenged but thanked the CA Sales board for having confidence in the stability of Botswana business environment.
“We have abundant capital from our pension funds thus more companies should follow CA Sales, Get Bucks and others by listing on our domestic bourse main,” he said.
Masisi commended the BSE leadership for continuing to carry out their mandate with evident delivery.
CA Sales distributes products from companies such as Tiger Brands, Unilever SA, Nestle, Kellogg’s, Nampak, Aspen, Colgate Palmolive, Pioneer Foods and South African Breweries across Southern Africa.
The company started operating almost three decades ago in Botswana as CA Enterprises and went on to acquire then competitors, Dafin Sales and Kalahari sales to birth CA Sales & Distribution. In 2011 it was incorporated as a private company under South African laws. Last year CA Sales registered profits of over R170 million.


Botswana Stock Exchange changes name as it demutualizes


Meanwhile the Botswana Stock Exchange (BSE) has begun a process to demutualize and transform into a public company. In a statement dated 7th November BSE is in the final consultation on the brainstormed names the new stock exchange will bear. The statement reads that substantial progress has been made in the much anticipated demutualization of the BSE which will see the conversion of the BSE from being a statutory body to a public company. BSE says the valuation of the Exchange has been completed and due process of awarding shareholding by the Minister of Finance and Economic Development will commence. “This milestone will officially separate ownership rights and trading rights of the Exchange and will be in line with global trends.”


Given this background, post demutualization, the Exchange will assume a new name. The BSE Transition Act of 2015 states that ‘the company may use Botswana Stock Exchange Limited as its company name and be legally designated as such for all purposes’. However Exchange House says the Act is not prescriptive on the name as it allows the BSE to assume a name that suits the requirements of the Exchange, particularly its vision to become world class. Internally the BSE leadership and management came up with few nomenclatures  in suggestion of naming the new entity, Botswana Stock Exchange Limited (BSE Ltd) ,Botswana Securities Exchange (BSX), Botswana Securities Exchange Group (BSE) and  Botswana Securities Exchange Holdings (BSE).


The statement from the BSE also notes that the proposed names are informed by research, brand identity, the need to be world class as the vision of the BSE prescribes, and the trends in the local securities market thus they call on stakeholders to share their views and brainstorm further names that can best suit the shape of the new demutualized public company.


“The naming of a national stock exchange is a matter of public interest; we would like to hear your views on the proposed names as a valued stakeholder,” reads the statement. The Botswana Stock Exchange Main committee will in finality and having taken stakeholders views into account make the final decision and appropriate recommendation to the Minister.

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