Mr Price rejects speculation of Edcon purchase

Mr Price
has rejected speculation that it has been looking to acquire retail chain Jet,
a unit of struggling fashion giant, Edcon, which recently went into business
rescue.

“The Group has no intention to acquire Edcon, in part
or in whole,” the Durban-based retailer said in a statement on SENS on
Thursday.

Mr Price’s “…criteria for a potential acquisition is clear,
consistent and demonstrable in its capital allocation track record, which has
over time been communicated extensively to shareholders,” the retailer
said.

Speculation of a possible acquisition was triggered after Mr
Price said it was planning on raising money by issuing new shares earlier this month.

Clarifying the reason for the equity raise, the company said
it was to 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 organic growth.

Edcon has been a mainstay in South Africa’s high streets and
the anchor tenant of choice in malls for more than 90 years. But after numerous
attempts over the years to resuscitate the company and its other brands such as
Jet, it applied for voluntary business rescue at the end of April. Its
inability to trade during the initial hard lockdown of the economy in response
to Covid-19 provided the final push into business rescue.