Deal allowing takeover of Edcon by creditors gets tribunal’s approval
The Competition Tribunal has approved with conditions a transaction that will allow the takeover of Edcon by a variety of its creditors, under a newly formed entity known as Parentco. Some of the private equity investment firms and banks under the Parentco umbrella include Franklin Templeton, Harvard Pension Fund, Barclays Africa and FirstRand. Late in September, Edcon announced that its then owner, Bain Capital, would walk away after a R25bn investment into the company. The move was necessitated by a debt burden too heavy to tackle. Edcon CEO Bernie Brookes said at the time that Bain would cede control to Edcon’s creditors and financial investors in a debt to equity transaction. The Competition Commission had initially recommended that the deal be approved by the Tribunal without conditions. But it is understood that government stakeholders and Edcon held last-minute discussions on Wednesday — the eve of the Tribunal’s decision — to discuss issues relating to employment. The Tribun...
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.