Durban – Famous Brands, the owner of the Wimpy, Steers and Debonairs brands, has bought a controlling stake in Coffee Contact from co-owner Charalambos Halamandaris, who is related to four Famous Brands’ board members including the chief executive.
Chief executive Theofanis Halamandaris, executive chairman Panagiotis Halamandaris and non-executive director Periklis Halamandaris are brothers. John Halamandres, the non-executive deputy chairman, is their cousin.
All family members recused themselves from discussions regarding the deal, which was concluded by chief operating officer Kevin Hedderwick and financial director Paris Papageorgiou, who are non-related parties.
Famous Brands will buy 70 percent of the business with a combination of cash and the issue of Famous Brands shares at R12.50 each.
The group did not disclose the acquisition price but said it was not material and Coffee Contact would not have a significant impact on its results.