Sub-Sahara Capital Group Takes Over Metro Peech
Sub-Sahara Capital Group (SSCG), the investment group that has interests in Gain Cash & Carry and Edgars, is acquiring Metro Peech & Browne Wholesalers (MPBW).
newZWire reported that SSCG, which has ties to the shareholders of Innscor, will inject US$13.5 million into a special purpose vehicle (SPV) to restart Metro Peech.
The company was placed under corporate rescue under Oliver Mtasa of Crowe Advisory (Private) Limited (OMCAPL) in September 2023 after it became technically insolvent.
OMCAPL corporate rescue assistant practitioner Raymond Sibanda told NewsDay on Tuesday, 07 November, that following the injection of the capital, SSCG will become the majority owner in MPBW. Said Sibanda:
A new investor called Sub-Sahara Capital Group will inject US$13,5 million into the company.
The investment into Metro Peech will cover working capital and payment of creditors, Sub Sahara Capital will be the majority shareholder.
According to the corporate rescue plan, there were multiple bidders for Metro Peech. Part of the plan reads:
The CRP (corporate rescue practitioner) held meetings with the prospective investors and provided information that included both financial and non-financial. The prospective investors were then requested to submit their offers.
The prospects were to be assessed on the basis of both the financial and the qualitative factors for the provision of a sustainable business model going forward.
It is on the basis of this assessment that the Sub-Sahara Capital Group (SSCG) bid was considered acceptable.
SSCG is a significant player in the market with investments in wholesale and retailing, agriculture, mining, financial services, tourism, human resources and manufacturing.
The assets of Metro Peech and Browne will be acquired by an SPV (special purpose vehicle) and employees will be transferred to the SPV.
The wholesaler has now closed for a month to allow stock takes, rebranding and a systems upgrade.
Gain already has over 60 branches countrywide, and now adds Metro Peech’s 17 outlets to its network.
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