S.Africa's Steinhoff offers $99 mln for rest of JD Group - CNBC Africa

S.Africa's Steinhoff offers $99 mln for rest of JD Group

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by Reuters 0

Steinhoff has offered 1.2 billion rand for shares it does not already own in JD Group.

South African household goods firm [DATA SHF:Steinhoff] has offered 1.2 billion rand ($99 million) for shares it does not already own in furniture retailer [DATA JDG:JD Group], it said on Tuesday.

Shares in JD Group, in which Steinhoff owns nearly 90 per cent, jumped 17.50 per cent to 32.90 by 1139 GMT on the news.

Under the deal, Steinhoff offered 34 rand per share for the stake it does not already own - a 21 per cent premium on Monday's closing price. The deal values JD Group at about 8 billion rand, according to Thomson Reuters calculation.

Steinhoff said the deal would help eliminate costs associated with the listing of the unit on the Johannesburg bourse and give it enhanced flexibility to make structural changes in the ailing retailer.

JD Group, along with other retailers in Africa's most advanced economy, has been struggling in recent years as consumers battling job losses and high personal debt levels cut back on spending.

Steinhoff said investors holding about 56 per cent of the remaining shares have given irrevocable undertakings to accept the offer.

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