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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.
