Foschini Shares Rally After Approach For RCS Investment Unit

Foschini Group Ltd., a South African clothing retailer, advanced the most in almost three months after the company received an approach to buy its consumer-finance unit RCS Investment Holdings Ltd.

The stock climbed as much as 5.6 percent, its biggest rise since May 22, and traded 4.2 percent higher at 101.42 rand at the market close in Johannesburg.

Foschini canceled a plan to reduce its shareholding in RCS to less than 50 percent in June after failing to get an offer it considered to be fair value. RCS is a joint venture between Foschini, which has a 55 percent controlling stake, and Standard Bank Group Ltd. (SBK)

Foschini has “subsequently received an unsolicited expression of interest to acquire 100 percent of RCS which the board of Foschini will consider,” the Cape-town based company said in the statement today.

To contact the reporter on this story: Janice Kew in Johannesburg at jkew4@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.