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Edcon (Proprietary) IRSH Notice

  Edcon (Proprietary) (IRSH) - Notice

RNS Number : 2027Q
Edcon (Proprietary) Limited
02 November 2012






2 November 2012



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).



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.





ENDS













 This announcement has been issued through the Companies Announcement Service
                                      of

                           The Irish Stock Exchange

                                      



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


ISEBLLFBLFFBFBL -0- Nov/02/2012 10:03 GMT
 
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