Steinhoff has green light for Pepkor deal

Steinhoff has green light for Pepkor deal

2015-01-27 12:04

Cape Town - Integrated retailer Steinhoff International [JSE:SHF] announced on on Monday that its shareholders have approved the company's acquisition of 92.34% of Pepkor.

Founded in 1965 and headquartered in Cape Town, Pepkor focuses on the discount and value market segments to the higher growth LSM 1 to 6 categories. The group operates in 15 countries on three continents around the world.

It employs approximately 33 000 people and has an extensive store network operating from over 3 700 retail outlets.

At its general meeting on Monday, Steinhoff received more than 95% approval of the majority in number of eligible voting shareholders dealing with the acquisition of Pepkor.

In terms of the ordinary resolution requiring 50% support, dealing with the waiver of the obligation on the voting pool members to make a mandatory offer to minority shareholders (a condition precedent to the proposed transaction), Steinhoff received in excess of 70% support.

The members of the voting pool who, on implementation of the transaction will collectively hold more than 35% equity stake in the company, abstained from voting for this resolution.

"We are very encouraged by the strong support from our shareholders. Their resounding approval now allows us to unlock the value and growth potential of the combined business," said Steinhoff CEO Markus Jooste.

He added that the effective date of the proposed transaction is expected to be concluded by the end of the first quarter of 2015, pending various regulatory approvals, including competition commission applications in the geographies where both groups operate.

The growth trajectory of the combined group is expected to be greatly enhanced by the geographical footprint overlap and the complimentary footprint largely focused on the faster growing value and discount market segment.

Jooste added that "Steinhoff is grateful to its supportive shareholder base and wishes to express our appreciation to the management and employees of Pepkor, and all our advisers for their valuable contribution to the transaction".