Bain Capital has offered Edcon shareholders R46 a share in its bid to acquire the group’s entire share capital and directors are recommending the deal.
The offer price is at a premium of 51,3% over the closing share price of R30,40 on October 16 2006, the day before Edcon issued a cautionary announcement regarding discussions with private-equity parties.
The total value of the transaction will be R25bn and will result in the de-listing of Edcon from the JSE.
Shareholders will be paid out in cash.
By 9:45, the share price was R43,85
More to follow…