JSE Sens
MR PRICE GROUP LIMITED - Clarity on intention of equity raise
2020/05/28 12:59:05Download PDF Stock report
Clarity on intention of equity raise: Clarity on intention of equity raise Mr Price Group Limited (Registration number 1933/004418/06) Incorporated in the Republic of South Africa ISIN: ZAE000200457 LEI number: 378900D3417C35C5D733 JSE and A2X share code: MRP (“Mr Price Group” “the company” or “the Group”) CLARITY ON INTENTION OF EQUITY RAISE As a follow up to provide clarity on the Group’s circular and SENS announcement of 20 May 2020 regarding a general meeting for authority to affect a specific issue of shares of up to 10% of the Group’s issued ordinary share capital (“Equity Raise”), the Group advises as follows. The purpose of the Equity Raise is to ask shareholders to lend support to fund long-term growth in anticipation of value accretive assets at attractive valuations becoming available in the current economic environment; as well as for organic growth of the existing business and new concepts. There has been speculation in the market that the Group is pursuing local clothing retail chain “Jet”, a division of Edcon Limited (“Edcon”) as a potential acquisition target. The Company wishes to address this speculation and advises that the Group has no intention to acquire Edcon, in part or in whole. The Company’s criteria for a potential acquisition is clear, consistent and demonstratable in its capital allocation track record, which has over time been communicated extensively to shareholders. The Group’s current cash resources and debt free balance sheet provide adequate support for existing business operations, including potential future disruptions in the medium term as a result of the COVID-19 pandemic. Durban 28 May 2020 Transaction sponsor Investec Bank Limited Date: 28-05-2020 12:59:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.