Pepkor Purchases The Operating Subsidiaries Of Fashion Africa Limited
PEPKOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1965/007765/06)
Share Code: PEP ISIN Number: ZAE000005344
("Pepkor")
This announcement appears as a matter of record only.
PEPKOR PURCHASES THE OPERATING SUBSIDIARIES OF
FASHION AFRICA LIMITED
The joint provisional liquidators of Fashaf (Proprietary) Limited and Jones
Retailing (Proprietary) Limited (together referred to in this notice as
"Fashaf") on 9 December 2002 advised Pepkor that its bid to acquire Fashaf had
been successful.
In terms of this transaction, which is subject to certain conditions including
the approval of the Competitions Authorities, Pepkor has agreed to acquire
substantially all of the assets of Fashaf. This acquisition will be effected by
way of a scheme of arrangement in terms of Section 311 of the Companies Act,
1973.
The transaction arrangements contemplate that Pepkor, on fulfillment of
conditions precedent, will take over most of Fashaf`s 218 stores and continue to
employ the approximately 1 000 employees at Fashaf.
Fashaf is a retailer in the apparel and footwear market, focusing primarily on
the young, fashionable consumer. Pepkor is well placed to assist Fashaf in
areas such as distribution, marketing and branding.
The acquisition of Fashaf will permit Pepkor to expand its retail base
profitably through product lines complementary to those lines currently offered
across the Pepkor group. Pepkor expects Fashaf`s turnover in the first full
trading year to be in the order of R500 million. The inclusion of Fashaf in
Pepkor will not have a material effect on the profitability of Pepkor. However,
in the medium to longer term, Pepkor expects that Fashaf will make a positive
contribution to its financial performance.
Further details of Pepkor`s strategy with regards to Fashaf will be included in
the announcement of Pepkor`s interim results for the half year ended 31 December
2002.
Johannesburg
12 December 2002
Sponsor: Corporate adviser: Legal advisers:
Barnard Jacobs Chartwell Capital Brink Cohen Le Roux &
Mellet Corporate Group Roodt Inc
Finance (Pty)
Limited
Date: 12/12/2002 10:00:01 AM Produced by the JSE SENS Department
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