TFG Jet Deal

TFG has had an interesting few months, with a successful rights issue and emerging with the bulk of Edcon’s 382 SA JET stores (and 4,800 employees) transferred to TFG as of 25 September. While the Botswana, Namibia, Lesotho and eSwatini store base is still waiting on regulatory approval, the bulk of the deal (and potential earnings base) has been concluded. TFG shareholders approved the subscription of an extra R3.95b of capital on July 16th to add about 20% to the number of shares in issue. The company today is worth R27.2bn or R11.9b more than its market value of the 16th July. Or worth some R7.9bn more than the extra capital raised. The higher share price therefore has already more than compensated for the additional shares in issue.