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Sefalana Holding Company Limited has disclosed that its subsidiary, Sefalana Cash & Carry Limited, is facing a winding-up petition in the High Court of Botswana over a disputed supplier claim of approximately R10 million.
The petition has been brought by a South African supplier seeking payment of amounts it alleges are due from Sefalana Cash & Carry. However, the subsidiary is opposing the claim and says it disputes a number of components of the amount being sought.
Sefalana said an ongoing review and reconciliation of the claim has identified several discrepancies, including the absence of purchase orders and other supporting documentation. The disputed amounts have consequently remained unpaid while the investigation and resolution process continues.
The group said it has already presented preliminary points of contention to the supplier, although the supplier continues to maintain that there is no dispute over the amounts claimed.
Sefalana stressed that the winding-up petition is not the result of an inability by Sefalana Cash & Carry or the wider group to meet its financial obligations.
The approximately ZAR10 million claim represents less than 0.3% of Sefalana Group's net assets of approximately P3.2 billion and its market capitalisation of around P4.0 billion. The group also has significant liquidity, including cash balances of approximately P200 million.
Despite the legal action, Sefalana Cash & Carry continues to operate in the ordinary course of business. The board said it does not expect the matter to have a material adverse impact on the group's operations or financial position.