Steinhoff International Holdings NV plans to list its African assets separately as the acquisitive retailer seeks a new prize for shareholders following this year’s failed merger talks with Shoprite Holdings Ltd.
The company said Wednesday it will seek to list businesses including clothing retailer Pepkor and furniture chain JD Group Ltd. on the Johannesburg Stock Exchange, about 18 months after moving its primary listing to Frankfurt from the South African commercial hub.
The move reflects the parent company’s transformation into a global retail giant with about two-thirds of its revenue generated outside Africa — a proportion that’s growing after Steinhoff last year spent more than $3 billion on takeovers in the U.K., U.S. and Australia. The listing is aimed at creating value for Steinhoff investors, including billionaire Christo Wiese, after a roughly 10 percent drop in the shares since discussions with Shoprite ended in February.
“This is very much a plan B,” Evan Walker, a money manager at 36one Asset Management in Johannesburg, said by phone. “It looks like a last-ditch attempt to get a bit of value in the business.”
The planned separation is “a natural progression” for Steinhoff following its expansion, the company said in a statement. Wiese, 75, became Steinhoff’s biggest shareholder when he sold clothing chain Pepkor to the company for 62.8 billion rand ($4.8 billion) in 2014. He is also the largest investor in Cape Town-based Shoprite, and was at the heart of the combination talks between the two companies.
In addition to Pepkor and JD, Steinhoff’s African assets include sports-shoe specialist Tekkie Town and Poco furniture stores. Combined sales for the company’s businesses on the continent were 4.3 billion euros in the 12 months through September.