RCL gets nod for Botswana acquisitionComment on this story
Johannesburg - South Africa's RCL Foods said on Friday it had received all regulatory approvals to buy a minority stake in Senn Foods Logistics, Botswana's biggest cold chain distribution business.
RCL has agreed to spend 79.9 million rand for the 49 percent stake as part of its plans to scale up in sub-Saharan Africa and diversifying from its chicken business.
Senn distributes dry, frozen and chilled foodstuffs in the southern African country.
RCL already has a similar business in its Vector Logistics, which distributes to chains such as Chicken Licken, Nandos and Wimpy.
A struggling South African 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 4 billion through a share issue.
RCL shares were down 0.5 percent to 15.56 rand at 12:36 SA time, largely in line with Johannesburg's All-share index that is 0.4 percent lower. - Reuters