Not the bane of their life

Finweek English Edition - - Main news stories -

WHAT HAP­PENED| SA LISTED RE­TAILER Ed­con will be bought by US com­pany Bain Cap­i­tal for a hand­some R25bn. Ed­con will be delisted once the deal goes through – un­like Absa when it was taken over by Bar­clays plc for R33bn. An­a­lysts are agreed that it’s an ex­cel­lent of­fer and a mo­tion of con­fi­dence that could at­tract other in­vestors. Fol­low­ing the of­fer, other re­tail shares showed an in­crease.

WHAT THE OTH­ERS SAID AC­CORD­ING TO Busi­ness Day, the of­fer is higher than an­a­lysts ex­pected, but Bain Cap­i­tal’s con­fi­dence that it will earn a fair re­turn on its in­vest­ment is ev­i­dence that Ed­con will add value through in­creased turnover and at­tract new ac­counts. The news­pa­per said that, if economists are cor­rect in pre­dict­ing that in­ter­est rates could start fall­ing again af­ter one more in­crease, Ed­con had plenty to of­fer Bain.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.