Steinhoff offers to buy 98% stake in JD Group - CNBC Africa

Steinhoff offers to buy 98% stake in JD Group

Southern Africa

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The Hi Fi Corporation chain is a part of the JD Group . PHOTO: Hi Fi Corporation

Steinhoff already owns 56.8 per cent of the issued JD Group shares, excluding treasury shares, and according to a statement, has received commitments from a number of institutional and individual JD Group shareholders to accept the tender offer.

Steinhoff is a retailer and manufacturer of goods in Europe, Africa, and owns a number of industrial businesses in Southern Africa.

(READ MORE: Steinhoff's HEPS up 41% due to supply chain growth

“As indicated in JD Group’s interim results announcement on 20 February 2014, JD Group is facing many challenges in the furniture retail and consumer finance business segments. These challenges will take some time and additional capital to overcome,” Steinhoff said in the statement.

“The increase of Steinhoff’s investment in JD Group, in an expedient manner, will enhance Steinhoff’s ability to support the operations of JD Group.”

(READ MORE: JD Group's results affected by low consumer spending)

As the second largest furniture retailer in Europe, Steinhoff expects to gives to provide JD Group shareholders international exposure and greater liquidity.