Steinhoff to take over JD Group
FMCG SUPPLIER NEWS
Fin24 - Jan 27th, 07:57
Johannesburg - Steinhoff International Holdings [JSE:SHF], Africa’s biggest furniture maker, aims to increase its stake in JD Group [JSE:JDG] through a share swap deal to gain control of the South African retailer.
Steinhoff said it plans to trade part of its holding in listed manufacturing unit Kap International Holdings [JSE:KAP] for shares in JD Group.
If the deal wins regulatory approval, Steinhoff will hold 50.1% of JD Group from about 32% now. It will also cut its holding in Kap International to about 62%.
The deal would help the Johannesburg-based company to create and eventually list three separate businesses focused on selling furniture in Europe, emerging markets and manufacturing.
Steinhoff, whose extensive operations in Europe already make it one of the biggest furniture retailers in that continent, said JD Group shareholders holding 11 million shares agreed to vote in favour of the deal.
With a market value of around $5bn, Steinhoff sells furniture in Britain under the Harveys and Sleepmasters brands and in Europe under the Conforama brand.
JD Group said it would appoint an independent board to study and advise on the transaction.
Shares in JD Group fell 1% to R50.24 in morning trade while Kap International jumped 6.9% to R3.10 and Steinhoff inched down 0.44% to R24.79.
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