Steinhoff Bids About 2.6 Billion Rand to Raise JD Stake to 98%Gordon Bell
Steinhoff International Holdings Ltd., a South African furniture seller, made an offer to JD Group Ltd. shareholders to boost its stake in the furniture company to 98 percent at a cost of about 2.6 billion rand ($243 million).
Steinhoff, which gets more than half its revenue from Europe, will offer 1 share for every 1.9 JD Group shares as it seeks to raise its stake from 56.8 percent, the Johannesburg-based company said in a statement today. The offer in equivalent to 27.77 rand a share, a premium of 38 percent of JD Group’s 5-day average, it said.
“The increase of Steinhoff’s investment in JD Group, in an expedient manner, will enhance Steinhoff’s ability to support the operations of JD Group,” Steinhoff said in the statement.
JD Group is a South African furniture retailer and provider of unsecured loans. Retailers in the country are struggling amid high unemployment and as inflation hurts spending, with those that sell on credit particularly vulnerable.