{"id":11159,"date":"2012-06-06T10:56:59","date_gmt":"2012-06-06T08:56:59","guid":{"rendered":"http:\/\/www.myza.co.za\/06\/update-1-s-africas-absa-edcon-in-1-18-bln-store-card-deal\/"},"modified":"2012-06-06T10:56:59","modified_gmt":"2012-06-06T08:56:59","slug":"update-1-s-africas-absa-edcon-in-1-18-bln-store-card-deal","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/update-1-s-africas-absa-edcon-in-1-18-bln-store-card-deal\/","title":{"rendered":"UPDATE 1-S.Africa&#8217;s Absa, Edcon in $1.18 bln store card deal"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG, June 6<\/span> (Reuters) &#8211; Absa, the South<br \/>\nAfrican unit of Britain&#8217;s Barclays Plc, will pay 10<br \/>\nbillion rand ($1.18 billion) to buy the private label store card<br \/>\nportfolio in South Africa of clothing and footwear retailer<br \/>\nEdcon, the companies said on Wednesday.<\/p>\n<p><span><\/span><\/p>\n<p>The deal is expected to close in the second half of 2012.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;(The deal will) strengthen Absa Bank&#8217;s position in the<br \/>\nunsecured retail credit sector, build a strategic relationship<br \/>\nwith one of South Africa&#8217;s leading retailers and allow Absa to<br \/>\nmake a greater range of financial services products available to<br \/>\nexisting and new customers,&#8221; the company said in a statement.<\/p>\n<p><span><\/span><\/p>\n<p>Edcon said the deal would boost credit sales, improve its<br \/>\nbalance sheet and allow the retailer to focus on and fund growth<br \/>\nin its core business activities.<\/p>\n<p><span><\/span><\/p>\n<p>The Edcon store card business operates primarily in South<br \/>\nAfrica, with smaller operations in Botswana, Namibia, Lesotho<br \/>\nand Swaziland.<\/p>\n<p><span><\/span><\/p>\n<p>While Absa plans to also buy Edcon&#8217;s portfolios in the<br \/>\nneighbouring countries, it is not a condition to the South<br \/>\nAfrican deal.<\/p>\n<p><span><\/span><\/p>\n<p>Under the deal, Absa will provide retail credit to Edcon<br \/>\ncustomers, while Edcon will be responsible for all<br \/>\ncustomer-facing activities.<\/p>\n<p><span><\/span><\/p>\n<p>Absa shares were up 0.73 percent at 152 rand by 0725 GMT,<br \/>\noutperforming a 0.08 percent rise in the JSE Top-40 index of<br \/>\nblue chip companies.<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>JOHANNESBURG, June 6 (Reuters) &#8211; Absa, the South African unit of Britain&#8217;s Barclays Plc, will pay 10 billion rand ($1.18 billion) to buy the private label store card portfolio in South Africa of clothing and footwear retailer Edcon, the companies said on Wednesday. The deal is expected to close in the second half of 2012. 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