Edgars to give additional shares to workers to meet indigenisation requirements

Edgars  Stores Limited announced on Monday that they will issue out additional 9.24 percent  shares to its emloyees so that it meets Zimbabwe’s indigenisation law requirements. The proposal will be considered on June 7 at an Edgars shareholders annual general meeting to be held in Bulawayo. The proposal reads:

The Directors be and are hereby authorized to do all that is necessary to make available to Edgars Stores Limited’s Employee Share Ownership Trust 25 450 000 (Twenty Five Million Four Hundred and Fifty Thousand) ordinary shares equivalent to 9.24% of the total issued share capital of the company which shareholding shall result in the company meeting the 51% Indigenization threshold.

South Africa’s Edcon Limited has 38 percent shareholding in Edgars while Zimbabwean firms, pension funds and insurers own a combined 45 percent. Zimbabwe’s indigenisation law requires foreign-owned firms to transfer majority stakes to locals.