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EDCON (PTY) LIMITED - Closing Announcement

Release Date: 02/11/2012 12:18
Code(s): EDC01     PDF:  
Wrap Text
Closing Announcement

Edcon Proprietary Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2007/003525/07)
Company code: BIEDC1
(“Issuer” or “Edcon”)


FIRST CLOSING OF SALE OF PRIVATE LABEL STORE CARD PORTFOLIO TO
ABSA

Long term strategic relationship formed between Edcon and Absa

On 6 June 2012, Edcon announced the intended sale of its
private label store card portfolio to Absa Bank Limited
(“Absa”) as well as the proposed implementation of a long term
strategic agreement. In terms of the strategic agreement Absa
will provide retail credit to Edcon customers, while Edcon
continues   to   be   responsible  for   all   customer-facing
activities, including sales and marketing, customer services
and collections.

On 1 November 2012, all conditions required for the first
closing of the South African book were satisfied and R8.8
billion of the South African private label store card
portfolio was sold to Absa. Simultaneously, the long term
commitment to provide future retail credit to existing and new
qualifying South African customers became effective.

Update to bondholders

Edcon is in the process of finalising financial results for
the thirteen week period ended 29 September 2012 (“Q2:2013”).
As the announcement of the first closing of the sale of the
private label store card portfolio is outside of Edcon’s usual
reporting timelines, Edcon wishes to advise bondholders
earlier than usual of the key financial results:

  Total retail sales for Q2:2013 increased by 2.4% (1.8% in
  Q1:2013).
  Adjusted EBITDA, excluding the consolidation of OntheCards
  Investments II (Pty) Ltd, is approximately 2% higher than
  the second quarter last year (12% down in Q1:2013).

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This trading statement has not been reviewed or reported on by
Edcon’s auditors. Further details will be made available
together with Edcon’s quarterly financial results on 27
November 2012.

2 November 2012


Debt Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)




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