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The Citizen
11 hours ago
- The Citizen
Legit deal: CompCom greenlights Pepkor's R1.9bn fashion brands acquisition
But with some conditions. JSE-listed retail giant Pepkor has received the green light from the Competition Commission (CompCom) to acquire five retail store brands – Legit, Style, Boardmans, Swagga and Beaver Canoe – from the unlisted Durban-based group Retailability. The CompCom confirmed the decision in a statement on Monday. It follows Pepkor and Retailability announcing the approximately R1.9 billion cash deal in March, which would include around 462 stores (within the five brands) across South Africa, Botswana, Lesotho, Namibia and Eswatini. The CompCom said that it 'recommended that the Competition Tribunal approves the proposed transaction whereby Pepkor Trading intends to acquire the target businesses [the five brands]'. 'The commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market,' it noted. However, its green light comes with conditions. ALSO READ: Pepkor to buy Legit, Swagga, Style and Boardmans Conditions 'To address public interest concerns, the acquiring firm [Pepkor Trading] will employ the target businesses' employees on terms and conditions that are no less favourable than the current employment terms and conditions,' the CompCom said. 'In addition, the acquiring firm shall not retrench any employees of the target businesses because of the merger. 'Lastly, the merged entity has also undertaken to maintain or increase the proportion of local procurement from small to medium enterprises and providers that are owned by historically disadvantaged persons,' it added. When Pepkor and Retailability announced the deal earlier this year, the companies noted that the Edgars, Edgars Beauty, Red Square, Kelso and Keedo businesses 'are not included in the proposed transaction and will continue to be operated by Retailability'. Pepkor said at the time that the deal is driven by its intention to expand its market share in adult wear through organic and acquisitive growth strategies. ALSO READ: Shoprite sells House & Home, OK Furniture to Pepkor In its statement, the CompCom noted that 'the primary acquiring firm, Pepkor Trading, is controlled by Pepkor Holdings Limited… Pepkor Holdings is a public company listed on the Johannesburg Securities Exchange [JSE] and is not controlled by a single shareholder. 'Pepkor Holdings controls a number of firms incorporated both inside and outside of South Africa… Pepkor Holdings has four operating segments but only two are relevant for the purposes of the proposed transaction.' The CompCom said these include the clothing and general merchandise segments, which include all clothing, footwear and homeware retail brands under Pepkor Speciality; and the furniture, appliances and electronics segment under Pepkor Lifestyle. It added that the 'target businesses' are controlled by Retailability SA. ALSO READ: Takealot sells online fashion retailer Superbalist 'The target businesses' activities in South Africa are as follows: Legit sells ladies' fashion/apparel and various beauty products. Swagga consists of Swagga/Beaver Canoe stores that sell apparel for men and boys. 'Style sells men's and women's contemporary and formal fashion wear, as well as kids' clothing and cellular products. Boardmans consists of an online-only store selling appliances and homeware products,' the CompCom highlighted. Retailability had purchased the Legit chain from Edcon years before the latter went into business rescue following the Covid-19 fallout. Later, during Edcon's business rescue process, Retailability also purchased the Edgars chain for an undisclosed amount. Edcon is now a defunct holding company, after Jet stores was also sold as part of the business rescue to JSE-listed TFG. Pepkor's share price This article was republished from Moneyweb. Read the original here.
IOL News
a day ago
- IOL News
PK Investments defends its voluntary offer for MAS amid governance concerns
MAS owned Moldova Mall in Romania underwent a redevelopment and reopened in April 2025. MAS' shareholder PKI Investment has made an offer to acquire at least 10% of the shares in MAS it does not already own. Mas shareholder PK Investments has defended its voluntary bid to buy MAS shares. Image: Supplied The corporate travails at JSE-listed East European property group MAS took another twist on Monday when shareholder PK Investments (PKI) insisted its 'voluntary offer' is fair, and the concerns raised by the MAS independent board were not material. PKI's offer follows its earlier attempt to get MAS to sell all its assets, but this was thwarted at a shareholders' meeting. It also follows concerns expressed by nine minority South African institutional shareholders about aspects of governance in the MAS board. These shareholders, which together own 15% of MAS, include Meago, Sesfikile Capital, Ninety One, Catalyst, Eskom Pension Fund, and Stanlib. South African REIT Hyprop also earlier withdrew a bid for MAS, because MAS's board and PKI allegedly failed to provide information. PKI has offered cash of €1.40 per MAS share (R29.22) or a preference share option or a combination of both. MAS's shares were trading 0.96% lower at R23.77 on Monday. On the MAS board's view that there was a 'perceived lack of regulator 'proactive' intervention' in the PKI bid, PKI's directors said their offer 'is fully compliant from a legal perspective.' And while the bid documents were submitted to the JSE for approval, it was the 'JSE's own view that it did not have jurisdiction to review or comment on the documentation,' PKI said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'This was not a view unilaterally adopted by PKI. We believe the PKI Voluntary Bid is generous by any reasonable measure, as evidenced by the premiums to MAS pricing levels recognised in the MAS announcement…' The MAS board had also said that neither it nor shareholders were 'engaged meaningfully by PKI prior to the launching of the bid, and that shareholders were not given enough time to make a complex decision.' PKI said, however the "bid is a voluntary offer…and does not constitute a scheme of arrangement or similar transaction. Accordingly, there was no express need to engage the MAS independent board prior to the launch thereof, as is the case with any such offer to MAS shareholders.' Additionally, said PKI, the material terms of the bid were publicly available since May 16, 2025. PKI and PSG Capital had also engaged 'extensively with numerous MAS shareholders' regarding the bid, PKI said. 'As regards MAS' statement that the timeline does not comply with the JSE corporate actions timetable or Maltese Capital Markets Rules, it should be noted that these rules are not applicable to the PKI voluntary bid,' PKI directors said. The MAS board had also questioned the absence of any requirement for the exempt parties to make a mandatory offer if, pursuant to the PKI bid, certain control thresholds were exceeded. 'MAS shareholders would already have had the opportunity to tender their shares into a full voluntary offer on attractive terms. This is precisely the outcome the mandatory bid regime in the MAS Articles is designed to achieve.' The MAS board also highlighted the absence of a third-party guarantee for the cash consideration. PKI said the settlement process, handled by MAS' own transfer secretaries, ensured that cash and shares were exchanged simultaneously. 'We further confirm that PKI has already deposited the maximum cash amount with its bankers in South Africa.' On the MAS board concern about the rand/euro exchange rate risk for South African shareholders, PKI said foreign exchange exposure was inherent in any cross-border investment and 'MAS' own share price already embeds EUR exposure through its portfolio.' On concerns that the free float reduction could mar the liquidity of MAS shares, PKI said many companies with lower free floats maintain healthy liquidity, while a stable, aligned controlling shareholder could bring strategic benefits and a more predictable capital allocation. BUSINESS REPORT
IOL News
3 days ago
- IOL News
Accelerate Property Fund reports significant credit losses and strategic disposals
JSE-listed Accelerate Property Fund has Fourways Mall as the flagship of its portfolio. Vacancies in the mall decreased to 13.7% by the en of the year to March 31, 2025, from 19% a year before. Image: Fourways Mall/Facebook Accelerate Property Fund (APF), which has Fourways Mall as the flagship in its portfolio of retail, office and industrial properties, has massively increased its credit losses to R1.05 billion due to the impairment of a related party agreement of R970.7 million. In the results for the year to March 31, rental income fell by 5.7% to R824.04m. Net property income was down by 8.3% to R494.74m. Including the expected credit loss, the taxed loss increased 103.2% to R1.27bn from a R624.74m taxed loss a year before. The big impairment related to a settlement agreement entered into in November last year, between APF and co-developer of the mall, Azrapart, that had lapsed due to suspensive conditions not being fulfilled in the requisite timeframe. Last month, Azrapart was placed into business rescue by the High Court in Bloemfontein, following an application by FirstRand's RMB and Investec, but Azrapart is appealing the ruling. Other parties to the agreement are the trustees of the Michael Family Trust; and Accelerate's former CEO Michael Georgiou, who also controls Azrapart. Although a new agreement was drawn up, it had still not been signed at the release of the results. As a result, the amount was impaired. 'As at the date of this report, Mr Georgiou (on behalf of the related parties) has not signed the new settlement agreement,' Accelerate's directors said. They said that despite its challenges and the geopolitical and economic headwinds, the group focused on strategic objectives - optimising the balance sheet through disposals to reduce debt and the concomitant reduction of SA REIT loan-to-value. During the year, eight assets were disposed of with a combined lettable area of 63 284 square metres, for R694m. After the financial year-end, Erf 7 Roggebaai and 1 Charles Crescent were transferred with a combined area of 15 547 square metres. The proceeds of R62.4m were used to settle debt. Sale agreements for a further four properties were concluded to the value of R688.5m, with a lettable area of 41 719 square metres, and a combined vacancy of 28.8%. The group's average collection rate was 98.9%. The directors said the formation of the Government of National Unity had improved investor confidence, and GDP growth was projected to accelerate to 1.5% in 2025 supported by stabilising electricity supply. Inflation had moderated. Regarding the outstanding related party matter, the directors said preliminary legal advice suggested the company's claims against the related parties were unlikely to have prescribed. 'However, certain aspects of the legal position remain under consideration.' Operating costs fell by 13.5%, largely due to decreased staff costs, but legal fees increased after the conclusion of sale agreements, related circulars, redrafting of related party agreements and the restructured finance agreements. Disposals unlocked proceeds of R694m utilised to reduce interest-bearing borrowings. During the year, R110.4m was spent on properties which includes investment properties and non-current assets held-for-sale. This was funded from available funds from facilities as well as specific facilities put in place for Fourways Mall. Vacancies decreased to 19.4% as at March 31, 2025, from 21.1% as at the same time a year before. Vacancies in Fourways Mall decreased to 13.7% from 19% following an aggressive drive to attract new tenants. The SA REIT LTV decreased to 48.3% from 50.3%. This was mainly a function of the disposals and LTV was expected to improve as the disposal programme progressed. On July 25, 2025, the company successfully raised R100m through a fully underwritten rights offer. Visit:
