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. — Business Reporter.