HARARE – Edgars Stores Limited Zimbabwe has resolved to acquire 15 million shares for $1,5 million from parent company Edcon, allowing it to de-merge from the struggling holding company.
This comes after South Africa’s biggest clothing retailer Edcon — which owns Edgars, Jet, CNA and other brands — had been struggling after losing market share over the past 10 years.
Edgars Stores Limited Zimbabwe management team entered into discussions with Edcon regarding the acquisition of the Edgars and Jet brands locally.
In a statement, Edgars Stores Limited Zimbabwe company secretary Buhle Mpofu advised shareholders that company directors resolved to “acquire the intellectual property rights to trademarks and brands assigned to Edgars by Edcon for the territory of Zimbabwe from Edcon for a consideration of $1,5 million to be settled through the issue of 15 million Edgar’s shares”.
“That, the directors of the company (or any duly authorised committee thereof) be and are, hereby authorised to do all such things that they may consider necessary desirable to give effect to, or pursuant to, or in connection with, the proposed transaction.”
The acquisition of the shares will see the local firm cutting franchise costs while reducing operating costs.
