Edcon announced today it will be seeking shareholder approval to split its ordinary shares on a ten-for-one basis.
The share split means that for every 100 ordinary shares held, Edcon shareholders will now hold 1000. The company's market capitalisation remains the same as the price for each share will be divided by ten.
Group Financial Director Steve Binnie said the share split is expected to make the share more accessible to private investors, including Edcon's staff and customers. "Further" he said, "splitting the shares will bring our share price more in line with the prices of the other companies in the retail sector."
Shareholders will be asked to vote on the share split at a special general meeting which will follow Edcon's Annual General Meeting on 13 July 2005.