NCL - New Clicks Holdings - New Clicks to sell 17 Musica store leases to MTN
NCL
NCL
NCL - New Clicks Holdings - New Clicks to sell 17 Musica store leases to MTN
New Clicks Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/000645/06)
JSE share code: NCL
ISIN: ZAE000014585
("New Clicks")
NEW CLICKS TO SELL 17 MUSICA STORE LEASES TO MTN
New Clicks has reached agreement with MTN to sell up to 17 Musica retail outlets
to MTN and to release space for MTN in six other Musica stores.
In terms of the agreement, MTN will take over Musica`s rental obligations,
certain store-related service contracts and permanent staff in the 17 stores.
The six stores where space has been released will be converted into separate MTN
retail outlets.
Commenting on the transaction, New Clicks CEO David Kneale said: "The
transaction will allow Musica to optimise trading locations for its
entertainment offering to reach its middle and upper income market customers.
Musica will consolidate stores in some shopping centres where there are two
stores, or in areas where two stores are trading in close proximity, as well as
reducing space in some Musica outlets. Musica continues to open new stores that
fit its property profile and we are also looking for opportunities to expand
space in key trading locations."
MTN South Africa MD, Tim Lowry said: "The transaction is in line with MTN`s
strategic objective to grow its South African branded store distribution
footprint in key locations. The stores being taken over from Musica are all in
prime locations and represent a significant step forward for MTN in achieving
its objectives with regard to its branded channel retail footprint."
The transaction is subject to certain conditions precedent, including landlords
consenting to the assignment of the leases concerned to MTN.
Cape Town
12 March 2009
Sponsor
Investec Bank Limited
Date: 12/03/2009 09:00:01 Produced by the JSE SENS Department.
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