Steinhoff International has announced plans to spin off its various African retail businesses, and list them separately on the Johannesburg stock exchange.
The move will see it first consolidate all its African operations – Pepkor, JD Group, Tekkie Town, Steinbuild, Unitrans Automotive, and Poco – into one holding company, to be called ‘ListCo’. This will then be listed on the stock exchange, with the move expected to be completed in the third quarter of 2017.
The group said it plans to maintain a controlling stake in ListCo, adding that the listing will allow the unit to be “independently valued as an emerging market, African-focused retail company.” It added that the listing aims to create shareholder value, following a drop in its share price after the failed attempt to merge with Shoprite Holdings. The move does not affect Steinhoff’s non-African operations, which include Poundland (UK), Fantastic Holdings (Australia), and Mattress Firm (US).