Clothing retailer Deacons East Africa to sell its Mr Price franchise
By David Indeje / Published October 9, 2017 | 11:20 am
East Africa’s leading apparel and household goods retailers, Deacons (East Africa) Plc (NSE: DCON) board has approved the sale of Mr Price franchise in Kenya.
The retailer said the decision was informed by Mr Price Group proposal to buy the franchise. “Deacons (EA) PLC notifies that it has been approached by Mr Price Group Limited, on of its Franchisors, with a proposal to purchase the Mr Price Franchised Business in Kenya and that Deacons has entered into preliminary negotiations in respect of the sale of Mr Price franchised Business to Mr Price,” read the statement.
Deacons’ Company Secretary Mr John L G Maonga said further information relating to the proposed deal will be circulated to the company’s shareholders prior to a meeting to consider the proposed transaction.
“In the meantime, the shareholders of Deacons and other investors are advised to exercise caution when dealing in the shares of the company,” he said.
The proposed transaction will be subject to various conditions that include requisite approvals from regulatory authorities and shareholders of Deacons.
Mr Price has expanded its operations in Kenya opening 11 stores.
The deal is still subject to regulatory approval with no value yet to be attached to the proposed transaction.
The deal, if approved, will see the firm purchase and operate all the 11 Mr. Price Home and Mr. Price apparel stores in Kenya.
Deacons has franchises for a number of South African brands, including: Truworths, Woolworths, Identity, Sheet Street, 4u2, BabyShop, Angelo, Reebok, Addidas, Lifeftness and Bossini.
Deacons has announced plans to open an online portal aimed at also cutting operating costs.
Deacons will take online orders and deliver goods to customers from the first quarter of 2018.
Deacons opened its first store in 1958 when it was the franchise holder for the Marks & Spencer brand.
More Articles From This Author