South African retail giant, Edcon has completed the
disposal of its shareholding in Zimbabwe-based clothing chain Edgars Stores
Limited to Mauritius incorporated entity SSCG Africa Holdings, as the group
realigns operations to remain sustainable.
Edcon controlled a 41 percent stake in Edgars Zimbabwe,
which has 25 branches across the country as well as 25 Jet Stores, a
micro-finance business and Carousel garment manufacturing factory in Bulawayo.
The transaction entails SSCG’s acquisition of a 100 percent shareholding in
Bellfield Limited which is an investment vehicle owned by Edcon. The investment
limited holds the 41 percent stake in Edgars Zimbabwe.
In a notice to its shareholders, Edgars indicated the
completion of the transaction between Edcon and the Mauritian-based SSCG.
“The Company has received notice from SSCG Africa Holdings
Limited that it has recently concluded a transaction in which it has acquired
from Edcon Limited 127,138,510 shares (through Bellfield Limited) representing
approximately 41,07 percent of the issued share capital of the Company,” said
Edgars.
The Edgars transaction is not the first by SSCG Africa in
Zimbabwe, as the firm also took a stake in resources group, Vast Resources with
an US$8 million transaction- split into two with an equal amount for payment of
shares and as a loan. By close of Friday trading on the Zimbabwe Stock Exchange
(ZSE), Edgars was at 20,3 cents which represented a 9 percent decline on prior
week level. Herald
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