Edcon acquires Retail Apparel Group`s debtors book
Deal
Edgars Consolidated Stores Limited
(Registration No: 1946/022751/06)
(Incorporated in the Republic of South Africa)
Share code: ECO
ISIN: ZAE000018388
Edcon acquires Retail Apparel Group`s debtors book and other assets in R200m
deal
Edcon is pleased to announce that it has reached an agreement with the
liquidators to take over the rights to the Retail Apparel Group`s (RAG)
retail brands, the debtors book, customer data base and a number of its
retail stores in a deal valued at approximately R200m. The agreement is
subject to final approval by the Master of the High Court and the
Competition Board. In terms of the agreement, Edcon will take immediate
responsibility for the management of the book, with final valuation based on
an asset verification process within the next two weeks.
Steve Ross, CEO of Edcon, says, "These acquisitions will allow Edcon to
leverage its management skills and systems in debtors management, as well as
convert RAG customers to its own stores with minimal disruption. The
combined impact will be sales and cash flow enhancing within the current
financial year, especially for United Retail, which includes the Jet, Sales
House, Cuthberts and Smiley`s Warehouse brands. In addition, Edcon will
strengthen its presence in Botswana, where we see additional opportunities
for the group."
-Ends-
12 June 2002
Issued by:
Brunswick SA (011) 442 8803
On behalf of Edcon
Steve Ross, CEO Edcon - (011) 495 6555
John Day, Chief Strategy Officer - (011) 495 1031
Date: 13/06/2002 08:44:07 AM Produced by the SENS Department
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