Shoprite Deferred enjoyment
Another store for Shoprite in Nairobi this week, its second in that booming Kenyan city, and halfway to the four they plan on having there by the end of the year. Kenya is a bridgehead for further East African expansion, and an interesting market, where the informal and independent trade rubs shoulders with local grocers like Tusky’s and Chandarana, and with French outfit (they say “outfee”) Carrefour, which has been in-country since 1995 when it was introduced by Majid Al Futtaim through a franchise agreement. Back home, Oom Christo is digging in on his price of R3.5bn for the repurchase of his super-powered deferred shares, which give him extra voting rights; some shareholders are opposing the deal. And speaking of shares, new CEO Pieter Engelbrecht is voting with his wallet, springing R20m for 115,000 of the little blighters, which in this market is what we call bullish.
Comment: It’s time, we believe, for Shoprite to move on from Christo Wiese and his drama, whatever it costs.