In a statement on Monday (13 July) TFG said Edcon’s business rescue practitioners have accepted the terms of TFG’s conditional offer. TFG has been granted exclusivity to negotiate and finalise the terms and conclude the Proposed Transaction.
TFG said the shareholder statement: “Jet is a leading Southern African retailer (by brand recognition and market share) and would provide TFG with a strategically important expansion into the value segment of the Southern African retail apparel market. The Proposed Transaction enables TFG to acquire selected parts of the JET business, a unique opportunity which previously was not possible and is expected to give TFG significant scale at an attractive price.”
TFG, which has been growing its local manufacturing capacity, said the proposed deal also comes with JET’s distribution centre located in Durban and certain stores in Botswana, Lesotho, Namibia and Eswatini. The company is looking to also acquire JET Club and all existing JET stock of no less than R800 million.
“As part of the conditional offer, TFG will assume the operational commitments associated with the Commercially Viable Stores only, such as employee and lease commitments, albeit on a renegotiated basis. Certain head office staff and functions will also be assumed. TFG is finalising its assessment of the capital requirements of the business and currently does not believe this would result in a significant change in the capital requirements for the overall TFG Group.
TFG are actively engaging with the business rescue practitioners and other key stakeholders in order to progress to a binding offer on an accelerated basis.
The Proposed Transaction is subject to customary conditions precedent for a transaction of this nature, including amongst others, the renegotiation of store leases, requisite transitional services arrangements being agreed, TFG Board approval and the approval by the relevant regulatory authorities.” For free breaking and community news, visit Mooivaalmedia’s websites:
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