Listed fashion retailer Truworths International has concluded an agreement to acquire a controlling stake in Young Designers Emporium (YDE) for an undisclosed sum, with effect from December 1 2003.
Announcing the deal on Wednesday, Truworths said the agreement is conditional upon satisfactory findings during a due diligence investigation and the approval of competition authorities, among other requirements. The group will finance the purchase from cash resources, and it is not expected to have a significant effect on its headline earnings or net asset value per share for the year to June 30 2004.
The YDE chain has 10 stores across South Africa in the country’s premier shopping malls, as well as a factory shop outlet. It offers leading-edge niche fashion merchandise under various emerging labels.
Truworths added that the founder of the business, Paul Simon, will been retained as YDE’s CEO, and together with his brother Mark will hold a minority interest in the company.
Truworths shares were last quoted on the JSE Securities Exchange at R9,70, up 20 cents or 2,11% from R9,50 at Tuesday’s close, with 304Â 791 shares changing hands in 47 trades so far on the day. — I-Net Bridge