First Annapolis Advises Edcon on Sale of Private Label Store Card Portfolio to Absa and Long Term Strategic Relationship Formed Between Edcon and Absa
On 6 June 2012, Edcon announced the intended sale of its private label store card portfolio to Absa Bank Limited (“Absa”) as well as the proposed implementation of a long term strategic agreement. In terms of the strategic agreement Absa will provide retail credit to Edcon customers, while Edcon continues to be responsible for all customer-facing activities, including sales and marketing, customer services and collections.
November 2012, all conditions required for the first closing of the South African book were satisfied and R8.8 billion of the South African private label store card portfolio was sold to Absa. Simultaneously, the long term commitment to provide future retail credit to existing and new qualifying South African customers became effective.
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