Mr Price today refuted the claims that it is considering buying Jet, a division of Edcon Limited after it announced plans for an equity raise.
Photo: File
Mr Price today refuted the claims that it is considering buying Jet, a division of Edcon Limited after it announced plans for an equity raise. Photo: File

Mr Price refutes claims that the retailer plans to buy Jet

By Sandile Mchunu Time of article published May 28, 2020

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DURBAN - Mr Price today refuted the claims that it is considering buying Jet, a division of Edcon Limited, after it announced plans for an equity raise.  

This comes after the retailer said last week that it is planning to raise capital by issuing 10 percent of its issued ordinary share capital. 

However, the group said yesterday 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, 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 group said. 

Mr Price added that its 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.

It said its 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.

The Covid-19 outbreak has already delayed the publishing of the group’s results for the 52 weeks to end March. 

It said at the beginning of the month that due to the impact of the nation-wide lockdown initiated as a result of Covid-19, the work streams related to the finalisation of the group’s financial results have been delayed.

The results will be released on June 25. 

Mr Price share price was up by 0.22 percent to R129.83 in the afternoon. 

BUSINESS REPORT ONLINE

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