South Africa's largest nonfood retailer announced this week that it had reduced its debt to R7-billion. Edcon was drowning in R26.7-billion of debt when US-based private equity firm Bain Capital announced last year that it was selling it. But the debt steadily increased to R29-billion. Last year, Bain handed ownership of the group to creditors in a debt-for-equity swop and, after a period of restructuring, the debt is down to R7-billion. The retailer's new major shareholder group comprises banking and investment firms such as Harvard Pensions Fund, Barclays Africa and FirstRand. When the restructuring ended on Wednesday, Singapore-based Franklin Templeton officially became the largest shareholder. Cedric Rimaud, director of emerging-markets research at Gimme Credit in Bangkok, said Edcon's reduction of its total debt was significant. "With R7-billion in total debt, Edcon will be able to bring its total leverage down to a much more manageable level," he said. This would take the burd...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.