Edcon - Company Announcement
EDGARS CONSOLIDATED STORES LIMITED
(Reg. No. 1946/022751/06)
(Incorporated in the Republic of South Africa)
Share Code : ECO
ISIN Code : ZAE000018396
Company Announcement
Edgars Consolidated Stores Limited ("Edcon") has concluded an agreement with
Thisday (Proprietary) Limited and Thisday Media Stores (Proprietary) Limited
("the sellers") in terms of which Edcon has agreed to purchase merchandise and
fixed assets from the sellers and to assume responsibility for the staff in
selected Thisday stores. These stores previously traded as CNA but were sold by
the liquidators before Edcon purchased the core CNA business last October. With
the integration of CNA into the Edcon Group now substantially complete, this is
an opportunity to add stores to the CNA divisions rapidly and to enhance its
profitability. The agreement is subject to the fulfilment of certain suspensive
conditions, one of which is that the approval of the Competition Commission must
first be obtained.
Upon fulfilment and/or waiver of the suspensive conditions and the renegotiation
of existing leases it is anticipated that between 25 and 42 outlets currently
trading as Thisday stores, will thereafter trade as CNA stores. The number of
stores, and resultant portion of the sellers assets purchased, depend upon Edcon
successfully negotiating leases with landlords but the purchase consideration
should not exceed R20 million. Annual turnover for the 42 stores approximates
R90 million. The effective date of the acquisition is dependant upon the
fulfilment of the suspensive conditions and, provided that Competition
Commission approval is obtained timeously, Edcon expects to be trading as CNA in
these stores, with enough time to take advantage of he important six weeks prior
to Christmas and the January back to school period.
Sponsor
Cazenove
Johannesburg
12 September 2003
Date: 12/09/2003 08:00:21 AM Supplied by www.sharenet.co.za
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