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Steinhoff Africa Retail is said to fail to attract Remgro interest

Jun 04 2018 16:31
Janice Kew and Loni Prinsloo, Bloomberg

Steinhoff Africa Retail may have to eliminate billionaire Johann Rupert’s Remgro from a list of potential new investors as it seeks to distance the retailer from its scandal-hit parent, according to people familiar with the matter.

STAR, as Steinhoff Africa [JSE:SRR] is known, asked Stellenbosch-based Remgro for a meeting about whether it would be interested in taking a stake, said the people, who asked not to be identified because the talks were private. Remgro is unlikely to proceed, they said.

Remgro’s investments include hospital company Mediclinic International and wine and spirits producer Distell. 

Management of STAR engages with many investors and the nature of the discussions don’t require a stock-exchange statement, a spokeswoman said in an emailed response to questions. Remgro declined to comment.

Last week, STAR said it will revert to the name Pepkor Holdings to separate itself from Steinhoff International Holdings, which in December reported accounting wrongdoing that wiped more than 95% off its market value.

Steinhoff bought Pepkor for $5.7bn in 2015 before spinning off most of it as STAR three years later. It holds a 71% stake in the Cape Town-based clothing retailer.

STAR’s stock snapped two days of declines, advancing 4.8% to R17.56 and valuing the clothing retailer at R60.4bn. The meeting between STAR and Remgro was earlier reported by Business Day.

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