Harare – Simbisa Brands Limited (Simbisa), a public-listed company that owns, operates, and franchises quick service restaurants in Africa, says it is restructuring its regional operations in a bid to be the leading QSR and casual dining operator in Sub Sahara Africa.
In a statement accompanying the Group’s financial results for the year ended June 30, 2018 it said its key strategic objectives are to continue to grow the core QSR business in existing and new African markets, to develop and acquire brands in the QSR and casual dining segment and enhance its service offering through technology development and by leveraging established infrastructure and supply chain investment.
The Group announced its acquisition of additional interest in Zambia, Ghana, Mauritius and the Democratic Republic of Congo.
The group said on July 1, 2017 it wholly owned the subsidiary in Zambian shares to its local partner in exchange for their 50 percent share assets and liabilities in a jointly operated operation between both parties.
“This has resulted in Simbisa’s interest in the Zambian operating entity, reducing from 100 percent to 51 percent. Simbisa still has control of the entity and it has been consolidated in the Group results on that basis in line with the applicable International Financial Reporting Standards.”
In its interests in Ghana, the Group said it acquired an additional 49.9 percent in July 2017 in voting shares of its operating entity.
“Consideration of $80 000 being receivables set-off was paid to the non-controlling shareholders. At acquisition date, the carrying value of the net assets of the Ghanaian operating entity was $1 796 418.”
On July 1, 2017 Simbisa said it acquired an additional 36.5 percent interest in voting shares of the Mauritanian operating entity. Increasing its ownership interest to 87.5 percent.
“Consideration of $1 767 504 was settled through conversation of shareholder loans to equity and conversation of Class A ordinary shares to ordinary shares. At acquisition date, the carrying value of the net assets of the Mauritanian operating entity was $1 286 700.”
Additionally the Group said due to continued macro-economic challenges and the rising financial and operational risk of operating in DRC, it disposed of its 51 percent interest in the DRC subsidiary and the partner now operates the brands under a franchise arrangement in that market.
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