Foschini Shares Rally After Approach For RCS Investment UnitJanice Kew
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.
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.