| Fri 30 Sep 2011, 8:12 | | PWK/PIK - Pick n Pay Holdings Limited/Pick n Pay Stores Limited - Pick N Pay |
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PWK PIK
PWK PIK
PWK/PIK - Pick n Pay Holdings Limited/Pick n Pay Stores Limited - Pick N Pay
completes sale of Franklins to Metcash
Pick n Pay Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1981/009610/06)
Share code: PWK ISIN code: ZAE000005724
Pick n Pay Stores Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1968/008034/06)
Share Code: PIK ISIN code: ZAE000005443
PICK N PAY COMPLETES SALE OF FRANKLINS TO METCASH
Pick n Pay and Metcash have today completed the sale of Franklins to Metcash
which was originally announced in July 2010. Metcash is now responsible for
the management of the business.
The completion of the sale follows the decision by the Federal Court of
Australia to dismiss an application by the Australian competition regulator,
the Australian Competition and Consumer Commission (ACCC), for an interim
injunction to prevent completion of the sale before the ACCC`s appeal could
be heard and decided.
The Chairman of Pick n Pay, Gareth Ackerman, commented: "We are delighted to
complete the sale of Franklins to Metcash following a 15-month delay since
the transaction was first announced.
"While the decision to exit our Australian investment was a difficult one, it
was clear to us that Franklins lacked the significant scale needed to compete
effectively in this market. Combining the operations of Franklins and Metcash
was the best option to create a more robust competitor to the major
supermarket chains.
"The successful exit from our Australian investment enables us to refocus our
resources on a strategic realignment across the Pick n Pay business, and
reinvest in the business.
"This includes increasing our focus on Pick n Pay`s core market where we can
leverage our regional competencies, and allows us to progress a number of
other initiatives such as centralising buying functions, category buying,
rollout of regional distribution centres, store refurbishments and additional
investment in our Smart Shopper loyalty program.
"Notwithstanding our decision to complete the sale, the ACCC`s appeal has
been expedited with a three day hearing scheduled to begin on 24 October
2011. Our confidence in a successful outcome has been boosted by the
comprehensive judgment in our favour in the Federal Court in late August and
by the court`s denial of the ACCC`s application for an interim injunction,"
he said.
For more information please contact:
Tamra Veley on +27 83 251 3658
By order of the board
Cape Town
30 September 2011
Sponsor:
Investec Bank Limited
Date: 30/09/2011 08:12:01 Produced by the JSE SENS Department.
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