Primaresearch - Foschini Group Ltd. 6.5% Cum. Pfd. (TFGP) The Foschini Group (TFG) - Can TFG take RAG to riches ?

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Primaresearch

Shamil Ismail

EUR 169.30 For Business Accounts Only

The Foschini Group (TFG) - Can TFG take RAG to riches ?

We consider TFG’s acquisition of Australian retailer RAG Group, and estimate that the return on investment for the private equity seller may be between 7.1% to 12.5% p.a., which raises questions as to why they would dispose of this retail business delivering higher double-digit topline and profit growth. We conduct on-the-ground research in Melbourne, Australia, and engaged a menswear fashion stylist to visit RAG stores and provide views of the chains which may explain its strong growth in a very tough market.

31/05/2017 11 EN

Underlying

Foschini Group Ltd. 6.5% Cum. Pfd.

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ZAE000148516 Johannesburg Stock Exchange South Africa

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Primaresearch

Primaresearch is an independent, sell-side, equity research firm based in Cape Town, South Africa. We focus our research on consumer-facing companies as we have credible experience in this space. The name “primaresearch” invokes both high quality (prime) as well as “primary” research – being novel and offering value-add investment insights for our clients.

Our Vision

Our vision is to be the leading independent sell-side research firm in Africa. While we start with South Africa, we are looking into providing our clients with comprehensive, Africa-wide consumer-facing company and market research. Africa is poised to emerge as a significant consumer market, for which investors in South Africa and abroad will require thorough research and insights on. We aim to be the “go-to” research firm for these investors.

Our Culture

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Analysts

Shamil Ismail

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The Foschini Group (TFG) - Can TFG take RAG to riches ?

The Foschini Group (TFG) - Management meeting notes

Blue Label Telecoms (BLU) â€“ Building an ecosystem

Novus Holdings - Overvalued

Steinhoff (SNH) ; Price Discovery - How we value Steinhoff

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