Bain in $1.5 billion South African Edcon debt for equity deal

Shoppers walk past an Edgars store at a shopping center in Soweto, southwest of Johannesburg. Credit: Reuters/Siphiwe Sibeko

Private equity firm Bain Capital has agreed a debt for equity swap deal valued at $1.5 billion for Edcon, the chief executive of the South African clothes retailer said last Tuesday.

Taken private in a highly leveraged 25 billion rand (or $3.5 billion at the time) buyout by Bain 2007, Edcon has struggled to grow at a fast enough rate to pay down debt.

“We have been living beyond our means, expenditure was more than our income,” CEO Bernie Brookes told a news conference.

Under the deal, Franklin Templeton, one of the world’s biggest fund managers, will become a top shareholder in Edcon, which sells brands such as Tom Taylor, Top Man and Salsa.

Other owners are Standard Bank, Barclays Africa Group, FirstRand, Standard Chartered, Investec, Brigade Capital and Harvard Pension Fund.

Read more: Bain in $1.5 billion South African Edcon debt for equity deal | Reuters

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