Steinhoff to Buy Africa Retailer Pepkor in $5.7 Billion Deal

November 25, 2014

Steinhoff International Holdings Ltd. (SHF) agreed to buy Africa’s largest retailer Pepkor Holdings Pty Ltd. for 62.8 billion rand ($5.7 billion) to expand the company’s presence in Africa.

The company will buy a 92.3 percent controlling stake in clothes and homeware seller Pepkor, with management keeping the remaining stock, Johannesburg-based Steinhoff said in statement today. Sellers include investment companies controlled by South African billionaire Christo Wiese.

“Pepkor is an attractive acquisition opportunity for Steinhoff given its strong market position, robust operating model, well executed multi-brand strategy, positioning for future growth opportunities and highly experienced management team,” Steinhoff said.

Steinhoff shares gained as much as 1.9 percent and traded 0.5 percent higher at 56.25 rand as of 9:20 a.m. in Johannesburg, valuing the company at 141.5 billion rand.
Pepkor has operations in 16 countries across Africa, Australia and Eastern Europe. It had sales of 38.2 billion rand in the year through June.

Steinhoff was advised by Citigroup Global Markets Ltd., Deutsche Bank AG, Barclays Plc and Commerzbank AG. Titan was advised by Rand Merchant Bank and HSBC Bank Plc. Source: Bloomberg