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Bain Capital and Goldman Sachs (NYSE: GS) agreed to acquire a majority stake in Carver Korea, a leading Korean cosmetics company, in a deal valued at over $300 million. “This important milestone in the history of the Edcon Group follows the recent payment deferral implemented in May 2016 and the securing of R1.5 billion of bridge financing under new Facilities A1 and A3 of the existing Super Senior Liquidity Facility Agreement,” said Edcon Group’s chief executive Bernie Brookes. “Our operational turnaround plans are already well underway and the finalisation of the process to reduce our debt will ensure Edcon remains the largest South African clothing retailer, but that it also returns to its former status as the leading clothing retailer in South Africa,” he added. The restructuring is expected to materially improve the liquidity position of the Edcon Group to ensure ongoing operations as well as address the current high structural leverage and cash interest burden on the operating company, the company said. The extended maturities and additional funding should facilitate the ongoing operational turnaround and allow management to refocus onto running the business and executing its strategic plan. The restructuring is also expected to alleviate concerns of key stakeholders such as suppliers, landlords and credit insurers. A new governance structure will be put in place, including provisions relating to transfers of shares, pre-emption rights, tag-along rights and drag-along rights, board composition and reserved matters requiring the consent of specific majorities of shareholders, the company said. Johannesburg-based Edcon has been in operation for more than 80 years and has expanded its footprint to include 1,542 stores as at March 26, 2016. Edcon’s Edgars division includes Edgars, Boardmans, Edgars Active, Edgars Shoe Gallery, Red Square and the group’s mono-branded stores such as Topshop Topman, Tom Tailor, Dune, Lucky, T.M. Lewin, Lipsy, Salsa, River Island, Vince Camuto, Calvin Klein, Inglot, La Senza and Accessorize whose products, are also available through Edgars stores, serving principally middle and upper income markets. Edcon’s Discount division includes Jet, JetMart and Legit, serving principally middle to lower income markets; and CNA, the group’s stationery, books, games, movies, music, hi-tech electronics and mobile retailer. The group offers credit and insurance products to its customers through strategic partnerships with third parties. Edcon’s primary operations are in South Africa where the group generated 88 percent of its retail sales in fiscal year 2016. The rest of its operations are in neighbouring Namibia, Botswana, Lesotho, Swaziland, Mozambique, Ghana, Zimbabwe and Zambia, where it operates 213 retail outlets.]]>