Mr Price not shopping for Jet


Mr Price not shopping for Jet

Published Date: 2020-05-29 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mr Price not shopping for Jet

The value retailer has dismissed speculation that it could be poised to buy clothing retail chain Jet.

Mr Price says it has no plans to buy any part of Edcon Limited as it prepares to ask its shareholders to approve a big equity raise. It was responding to speculation that it was pursuing Edcon's Jet chain of clothing stores as a potential target acquisition.

Last week, the value retailer said it would seek authority to issue shares for cash not exceeding 10% of its current ordinary share capital at a general meeting next month. Internal market research had identified attractive growth areas and a capital raise would enable it to pursue and accelerate these opportunities, organically or through acquisitions. It wanted to be well positioned to respond quickly without being comprised by the status of prevailing equity markets at a particular time.

In its previous announcement, the group said it had set clear guidelines for possible acquisitions, including geography, market sector, growth opportunity, size and valuation and that it would maintain financial discipline. Its focus was also on several growth opportunities in South Africa rather than a single large acquisition or offshore expansion.

It said its current cash resources and debt free balance sheet provided adequate support for existing business operations, including potential future disruptions in the medium term as a result of the Covid-19 pandemic.

The general meeting will be held on 29 June. Its shares rose 1.1% to R130.91 yesterday.

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