Clothing manufacturer and retailer, Edgars Stores Limited is issuing share capital by way of a rights offer to raise funds for its expansion initiatives, 263Chat Business can report.
A rights offer is when a company issues new shares with priority to existing shareholders.
The company has already issued a caution to shareholders and public investors over trading of its shares during this period as the transaction are likely to have effect on company share value.
“The Directors of Edgars Stores Limited wishes to advise all shareholders and the investing public that the company is engaged in discussions that involve a potential transaction that may have a material impact on the value of the Company’s shares.
“The transaction involves raising capital for the Company’s expansion initiatives through the issuance of shares by way of a rights offer.
“Shareholders are therefore advised to exercise caution when trading in the Company’s shares,” Company secretary, Vuyo Nxumalo said.
The company now under control of new major shareholder, a Mauritian investment management firm SSCG Africa Holdings which bought 41.07 percent stake last year is seeking to expand the clothing company’s footprint across the country.
In October last year, Edgars through its subsidiary, Jet Stores opened a new branch in Banket and reopened Kadoma branch.
Edgars runs 25 branches throughout the country and controls 25 Jet Stores, the Club micro-finance unit as well as Carousel, the garment manufacturing factory based in Bulawayo.
