Harare – Edgars Stores Limited Zimbabwe says it has successfully achieved all conditions which were required for the acquisition of trademarks to brands owned by the retailer’s South African shareholder Edcon in exchange of an increased stake in the Company and the transaction was implemented on Friday 22 March 2019.

At an EGM held on the 16^th of January 2019, the shareholders authorized the Company 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 US$1 500 000 to be settled through the issue of 15 000 000 Edgars shares.

It also authorized the Directors of the Company (or any duly authorized committee thereof) to do all such things that they may consider necessary or desirable to give effect to, or pursuant to, or in connection with, the Proposed Transaction.

However, the transaction was subject to the finalization of outstanding Conditions Precedent which includes the Exchange Control Approval from the Reserve Bank of Zimbabwe; and approval of the listing of the new ordinary shares on the Zimbabwe Stock Exchange.

In a press statement on Monday EDL said, “Reference is made to the notices published by Edgars stores Limited on 22 January 2019 regarding the results of the EGM of Edgars shareholders where shareholders approved the proposed transaction by the required majorities and the conditions precedent that the Company needed to achieve to conclude the proposed transaction.

“The Directors of Edgars are pleased to advice shareholders that the Company has successfully achieved all conditions precedent and that the transaction was implemented on Friday 22 March 2019.”

The transaction will see Edcon increase its shareholding in EDL from 38,07 percent to 41,07 percent, through its 100 percent-owned local outfit, Bellfield Limited.

The purchase of the franchise brands through the issuance of it’s ordinary shares, EDL seeks to reduce costs associated with paying franchise fees for Jet and Edgars brands and other brands that it operates locally.

Edgars Stores Limited is a limited company incorporated and domiciled in Zimbabwe whose shares are publicly traded. Its core business is the retailing of clothing, footwear, textiles and accessories.

Founded by Sydney Press, Edgars Stores was registered as a company in Zimbabwe, then Rhodesia, in November 1948. The company went public in 1974.

To hedge against potential risks associated with erratic supplies and stockouts which could easily damage service delivery, the group acquired Carousel Clothing factory in 1974 and the Jeans Company in 1993.

Carousel is Edgars' manufacturing business unit, which produces a wide range of denim, ladies, children's and gents' casual wear that it supplies to the company's retail divisions as well as to other retailers

In 1984, another retail brand called Express was introduced and its first store opened in Harare’s Julius Nyerere Way. By 1988 there were 24 Express outlets. In November 2011, Express Mart was rebranded and Jet Stores launched.

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