Fin24

Steinhoff European IPO could raise $2bn

2012-02-23 12:49

Johannesburg - Steinhoff International Holdings [JSE: SHF] could raise at least $2bn when it eventually floats its European unit, the furniture maker’s head of investor relations said on Thursday.

Steinhoff, Africa’s top furniture maker and one of Europe’s biggest furniture retailers, could list the European business in London, Paris or Frankfurt, said Mariza Nel, Steinhoff’s head of investor relations.

“The European unit is listable, it’s big enough but we’re not in a hurry,” she said, adding the listing could raise a minimum of €1.5bn ($2bn) depending on the free float requirements of the bourse it floats in.

Nel said there was no clear date as when the company would list the unit.

An initial public offering of the business would complete Steinhoff’s restructuring drive aimed at creating three listed separate businesses focused selling furniture in Europe, emerging markets and manufacturing.

Steinhoff sells furniture in Britain under the Harveys and Sleepmasters brands and in the rest of Europe under the Conforama brand.

The company also wants to increase its stake in South African retailer JD Group in a share-swap deal that would reduce its holding in manufacturing firm Kap International to about 62%.