SSCG Africa Holdings, a Mauritian investment company and struggling South African clothing retail giant, Edcon have concluded a share hand-over deal in Edgars Zimbabwe that will see the Mauritian based entity assume a 41 percent stake, 263Chat Business has learnt.
Edcon, through its local investment vehicle, Bellfield disposed its stake as the struggling clothing retailer sought to realign operations to stay afloat.
In a statement to its shareholders, Edgars Store Limited secretary, Buhlebenkosi Mpofu confirmed the finalization of the deal.
“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% of the issued share capital of the Company,” Mpofu said.
However, while the actual monetary value of the deal could not be accurately established, the cash injection is expected to provide Edgars with the much needed resources to revamp the dilapidated Edgars factory in Bulawayo, market watchers say.
Meanwhile Edgars Zimbabwe has had a positive run this year, posting a 114 percent increase in profit to US$ 8.5 million in January 2019 on account of a 22 percentage point revenue growth.