A MAURITIAN investment management firm, SSCG Africa Holdings, has concluded a transaction to acquire 41,07 percent of Edcon shares from clothing retailer, Edgars Limited.
SSCG Africa Holdings, which also has interests in local micro-finance Untu Capital, was given the go ahead by the Competition and Tariff Commission to acquire a 41,07 percent stake in the Zimbabwe Stock Exchange (ZSE)-listed concern, which was previously held by Edcon, a South African headquartered group.
In a notice to shareholders yesterday, Edgars Stores Limited company secretary, Mrs Buhle Mpofu, said:
“The company has received notice from SSCG Africa Holdings Limited that it has recently concluded a transaction in which it has acquired from Edcon Limited 127 138 510 shares (through Bellfield Limited) representing approximately 41,01 percent of the issued share capital of the company”.
Edcon was recently forced to restructure its operations after it went through turbulent times and nearly collapsed before being bailed out through R2,7 billion facilities by several lenders, including the Public Investment Corporation of South Africa.
The deal, which was approved by the CTC will see SSCG buy 100 percent of Bellfield, the investment vehicle through which Edcon held 41,07 percent of Edgars shares.
CTC has said as a result of the acquisition, SSCG will have direct control in Edgars. This deal is the final separation of Edgars Zimbabwe and its former parent and follows the previous one, which saw the two entities agreeing to a US$1,5 million deal that allowed the local unit to acquire the Edgars and Jet trademarks from Edcon.
That deal had seen Edcon increase its stake in Edgars from 38 percent to 41 percent only to dispose the entire stake to SSCG. Edgars is the largest clothing retailer, with 25 branches dotted across the country.
It also controls 25 Jet Stores, the Club micro-finance unit as well as Carousel, the garment manufacturing factory based in Bulawayo.