Not the bane of their life
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.