RCL Foods: Approvals granted for Botswana buy

RCL Foods had received all regulatory approvals to buy a minority stake in Senn Foods Logistics, Botswana’s biggest cold chain distribution business, the parent of Rainbow Chicken said on Friday. RCL has agreed to spend R79.9 million for the 49 percent stake as part of its plans to scale up in sub-Saharan Africa and diversify from its chicken business. Senn distributes dry, frozen and chilled foodstuffs in Botswana. RCL already has a similar business in Vector Logistics, which distributes to chains such as Chicken Licken, Nandos and Wimpy. A struggling local economy and the availability of cheap chicken imports have hurt RCL’s profitability, compelling it to diversify into other segments such as sugar. In January, RCL purchased two subsidiaries of TSB Sugar Holdings for R4 billion through a share issue. RCL’s shares closed down 3c at R15.60 on the JSE on Friday. – Reuters