West Foods acquires Red Star Wholesalers

listing rights, goodwill in business and first right of refusal should the parent company starafricacorporation intend to dispose of its buildings and equipment.
West Foods Group executive chairman Mr Ken Sharpe, who also doubles as Red Star chief executive, revealed last week that his company had taken over Red Star Wholesalers and had opened two branches in Harare and Bulawayo.
He said the wholesale group has a novel indigenisation programme that will see thousands of customers getting shareholding in the company.
The group had initially targeted Jaggers Wholesalers but when the deal flopped, Mr Sharpe said he opted for Red Star.
“We made an agreement to buy Red Star in its entirety. We saw an opportunity for a national wholesaler. We have begun with two branches but intend to expand our branch network to 31 including at growth points and in rural areas across Zimbabwe.
“We have bought the name Red Star Wholesalers and its goodwill in business,” he said.
He said Red Star has an edge over its competitors in that it puts emphasis “on low margins and high volumes”.
He said Red Star had started the process of returning to the Zimbabwe Stock Exchange.
The company was suspended from trading after its former owners bought out other shareholders.
“We have applied to the Zimbabwe Stock Exchange to have the suspension lifted and for the reinstatement of trading.
“We have bought the company without any debt. Star Africa took all the debt,” he said.
The official opening of the Harare branch has been set for September 16 where Mr Sharpe promised to unveil the indigenisation proposal that would see ordinary Zimbabweans snapping up shareholding in the company.