Steinhoff to acquire Pepkor for R62.8bn
Founded in 1965‚ Pepkor manages a portfolio of retail chains operating in 16 countries across three continents.
Blue-chip retailer Steinhoff said the acquisition was "compelling" as it would strengthen its position within the discount retail market segment.
Steinhoff intends acquiring Titan Premier Investments Proprietary's effective equity interest in Pepkor of 52.47%‚ 37.06% from Brait and 2.81% from Pepkor management. The remaining shares in Pepkor are held by Pepkor management.
Steinhoff said the acquisition would further enhance its position as a global vertically integrated retail group in terms of size‚ geographic spread‚ operating scale and product diversity.
The purchase consideration payable for Titan's interest in Pepkor will be settled through a series of transaction steps‚ including the subscription of shares in Steinhoff.
Brait will sell its stake in Pepkor for R26.4bn‚ which will be settled in cash and shares.
The Pepkor management deal will be settled by the issue of 29.9m Steinhoff shares at R57 per share.
Source: BDpro via I-Net Bridge