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.
This announcement has been issued through the Companies Announcement Service
The Irish Stock Exchange
This information is provided by RNS
The company news service from the London Stock Exchange
ISEBLLFBLFFBFBL -0- Nov/02/2012 10:03 GMT
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