Edcon shareholders overwhelmingly support Bain Capital proposal
16 April 2007
The Board of Directors of Edcon today announced it had received in excess of the requisite 75% shareholder approval for the Bain Capital proposal to acquire the entire ordinary share capital of the company at R46 per share.
The Board had recommended the offer to shareholders on 8 February 2007 following a global auction process. The value of the proposal represents a premium of 51.3% over the closing share price the day before the company announced it was in discussions with interested private equity parties and values Edcon at R25 billion.
"We're pleased that the shareholders of Edcon overwhelmingly voted in favour of this transaction, allowing them to realise substantial value from their investment," commented Edcon non-executive chairman Selwyn MacFarlane. "We see this as an historic endorsement of the soundness of South Africa's economy and international standing. We believe Bain Capital has both the commitment and experience to help propel Edcon to new heights."
"Most importantly, we believe their pledge to continue our commitment to Broad-Based Black Economic Empowerment by replicating the benefits of our Staff Empowerment Trust and supporting our focus on skills and leadership development programmes will help to ensure that Edcon remains South Africa's leading retailer," he concluded.
Dwight Poler, a Managing Director of Bain Capital said: "We are delighted to have received shareholder approval for the transaction. We look forward to working as part of the South African business community with the management and employees of Edcon to enhance the company's leading market position."
The transaction remains subject to the fulfilment of certain conditions precedent detailed in the circular issued 16 March 2007, including court sanction of the scheme and approval by the competition authorities and the South African Reserve Bank.