Johannesburg – Steinhoff’s [JSE: SHF] merger plans with Shoprite [JSE: SHP] may have fallen through, but the international retail holding company still plans to acquire a stake in the retailer through its African business unit.
Steinhoff International announced to shareholders that the listing of its African retail business on the JSE should be completed by the end of September. The listing of the holding company, Steinhoff African Retail Limited (STAR) which was established on July 1, will also be accompanied by a capital raise through a private placement. The proceeds are to be distributed to Steinhoff.
STAR is expected to be part of the JSE Top 40 and the MSCI Emerging Market Index. STAR owns all of the African retail assets. These include Pep, Ackermans, the JD Group which includes Russells, Bradlows, Rochester, Incredible Connection and Hi-Fi Corporation and Tekkie Town, among others.
The board decided to exclude Unitrans Automotive business from the listing due to its different characteristics and growth drivers compared to the other African assets. The company is still owned by Steinhoff.
Read more at (article taken from): http://www.fin24.com/Companies/Retail/steinhoff-in-renewed-bid-for-r355bn-stake-in-shoprite-20170807