Edcon Expresses Interest In Myer Stores In Australia
Edgars Consolidated Stores Limited
(Reg. No. 1946/022751/06)
(Incorporated in the Republic of South Africa)
ISIN Code: ZAE000068649
Share Code: ECO
(`Edcon`)
EDCON EXPRESSES INTEREST IN MYER STORES IN AUSTRALIA
Following an announcement earlier this month by Australian holding company Coles
Myer Ltd that it would consider `ownership options` regarding its Myer chain of
stores, Edcon will be forming a team in South Africa and Australia to explore
any possible opportunities for the company.
`Australia is a large market in the Southern Hemisphere and if Coles Myer
decides to divest Myer then we want to be in a position to determine if an
acquisition of Myer would create shareholder value for Edcon,` said CEO Steve
Ross.
Ross said that the team would conduct an evaluation to explore any apparent
similarities between Edcon and Myer relative to market position, brand
components, product sold and product seasonality. These may support improved
purchasing leverage for Edcon, as well as increased sourcing opportunity,
international brand management and operating economies of scale of the combined
business.
`We have a disciplined approach to acquisitions and we will carefully evaluate
all issues in regard to any potential international diversification in our core
business,` said Ross.
Myer is the largest chain of department stores in Australia and has 61 stores
around the country. Their annual turnover is A$3.1 billion and their market
share in Australia is similar to that of Edgars in South Africa, at roughly 20%.
Johannesburg
31 August 2005
Sponsor:
Merrill Lynch South Africa (Pty) Limited
Namibian Sponsor:
Irwin Jacobs Greene (Pty) Limited
Date: 31/08/2005 09:20:02 AM
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