Steinhoff considers IPO of Pepkor Europe
By Janice Kew, Konrad Krasuski and Myriam Balezou - Aug 7th, 08:23
Steinhoff International Holdings is considering an initial public offering of Pepkor Europe, its fastest-growing unit, as the scandal-hit retailer seeks funds for the next phase of its recovery plan, people familiar with the matter said.
The company has been discussing a listing of Pepkor Europe with potential advisers, according to the people, who asked not to be identified because the information is private. The business - which owns the Pepco and Dealz chains as well as Poundland in the UK - could sell shares in the next year, the people said.
Steinhoff shares surged as much as 7.4% in Frankfurt, where the company has its main listing.
The retailer is considering selling shares of the Pepkor Europe unit in London, though a Warsaw listing is also a possibility, the people said. No final decisions have been made, and Steinhoff could pursue other options for the business, the people said. A representative for Steinhoff declined to comment.
Steinhoff is looking at ways to raise cash as it works through the final stages of its debt restructuring, which is scheduled to be completed by an August 9 deadline agreed by creditors. The company’s shares have lost more than 90% of its value since December 2017, when Steinhoff initiated a probe into accounting irregularities.
Last month, Steinhoff reported sales from continuing operations rose 3% in the six months through March. Pepkor Europe’s discount clothing and household brands were the standout performers, with revenue from the division increasing 13% to €1.73bn
Pepco had nearly 1,600 stores at the end of March, mostly in eastern European countries such as Poland and Romania. The division also has another 875 outlets under the Poundland, Dealz and Pep&Co brands.
Steinhoff started gauging takeover interest a year ago in businesses including Pepco, Bloomberg News had reported. Pepkor Holdings Ltd, the South African clothing retailer controlled by Steinhoff, expressed interest in acquiring both Pepco and Poundland from its parent company, people with knowledge of the matter said at the time, though the talks didn’t result in a deal.
Steinhoff’s legal woes leave little for those holding stock
21/08/2019 - 09:24
Steinhoff International Holdings may have about €15bn (R255.1bn) of assets and stakes in profitable companies such as Pepkor Holdings, but you will not see that reflected in the share price.
Steinhoff and Pepkor blocked from selling Tekkie Town shares
21/08/2019 - 08:44
The Western Cape High Court has prevented Steinhoff and its subsidiary, Pepkor Holdings, from selling or dealing in the shares of shoe retailer Tekkie Town, in a ruling handed down on Tuesday.
Steinhoff says restructuring exercise complete
14/08/2019 - 12:15
International retailer Steinhoff said its subsidiaries Steinhoff Europe AG (SEAG) and Steinhoff Finance Holding GmbH (SFHG) had successfully completed the implementation of an exercise which restructured their financial indebtedness and changed the group's European corporate holding structure.
Steinhoff CFO to step down
08/07/2019 - 09:29
Finance boss Philip Dieperink will be replaced by operations director Theodore de Klerk.
Parliament's new finance chair promises to wrap up Steinhoff, VBS probes
03/07/2019 - 08:51
Newly-elected chairperson of Parliament's standing committee on finance, Joe Maswanganyi, says the Steinhoff and VBS sagas will "reach a conclusion" under his watch as committee head.