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The Foschini Group (TFG) has reached an agreement with Edcon's business rescue practitioners to buy some of its subsidiary Jet's assets. The fashion retailer first announced over a month ago that it had made a R480 million offer to buy some 371 "commercially viable" Jet stores.
Edcon, which owns Edgars and Jet Stores, filed for voluntary business rescue in April after the nationwide lockdown exacerbated its already dire financial position. In June, its BRPs said the only way to save the company was through an "accelerated sale" of its divisions.
"TFG is pleased to announce that it has successfully negotiated and concluded a sale of assets agreement with Edcon and its Business Rescue Practitioners on 14 August 2020 and on principally the same terms as those set out in the conditional offer," wrote the company in an announcement published on the Stock Exchange News Service on Monday.
TFG's conditional offer provided for TFG to acquire the Jet brand, a minimum of 371 stores including a distribution centre located in Durban, as well as certain stores in Botswana, Lesotho, Namibia and Eswatini.
The offer also included the acquisition of at least R800 million worth of stock and property and equipment. TFG said the sale of asset agreements in Botswana, Namibia, Lesotho and eSwatini stores has not yet been finalised, but is expected to be executed shortly.
To conclude the acquisition, TFG is waiting on approval from competition authorities, amended lease terms from landlords, and confirmation from unsecured credit provider, RCS Cards, that it will continue providing credit for Jet customers.
"Based on the positive progress to date, the parties believe that the remaining conditions precedent could be fulfilled by the end of September 2020," said the company.
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