Steinhoff to list African retail assets on JSE

Steinhoff to list African retail assets on JSE

Steinhoff International will separately list its African retail businesses on the Johannesburg Stock Exchange (JSE).

The South African retail group will look to consolidate its African assets, which include clothing retailer Pepkor and furniture chain JD Group, prior to listing on the JSE.

Steinhoff will continue to hold a controlling stake in its African assets following the listing, which will include a capital increase, and is set to be completed by the penultimate quarter of 2017.

The move reflects the firm’s evolution into a global retail giant, with latest figures indicating that two thirds of its revenue is generated outside of Africa.

Last year, Steinhoff spent more than US$3 billion on takeover deals in the UK, US and Australia in a further affirmation of its expansion into competitive international retail markets.

Listing its African units on the JSE is aimed at creating value for investors in Steinhoff, following a drop of around 10% in its shares following the collapse of merger talks with South African food retailer Shoprite in February.