Steinhoff African unit to be part of JSE Top 40, buy stake in Africa’s largest retailer Shoprite

PUBLISHED: Fri, 04 Aug 2017 18:08:43 GMT

Global discount retailers Steinhoff and its subsidiary Steinhoff Africa Retail (STAR) have entered into call option agreements with Lancaster Group Proprietary, the Public Investment Corporation  and Titan Premier Investments, a family trust of Billionaire Christo Wiese to acquire economic and voting interests in Thibault Square Financial Services and Africa’s largest retail group – Shoprite for R8 billion or $593 million. Once the call option is exercised Steinhoff and its subsidiary will hold a 22.7% economic interest and 50% of the voting rights in Shoprite.

STAR is expected to list by the end of September, subject to market conditions. It will list by way of a capital raising in order to establish the public shareholding spread and liquidity required by the JSE. The proceeds will be distributed to Steinhoff.

STAR is likely to be included in the JSE Top 40 Index and other relevant emerging market
indices, such as the MSCI Emerging Market Index.

Its brands include Pep in South Africa and the rest of Africa, Ackermans, Speciality division (comprising Dunns, John Craig, Refinery and Shoe City), JD Group (comprising Russells, Bradlows, Rochester, Sleepmasters, Incredible Connection and Hi-Fi Corporation), Steinbuild (comprising Buco, Timbercity, Hardware Warehouse and The Tile House), Poco South Africa and Tekkie Town.

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.