Pepkor Explores Takeover of Brazilian Retailer Avenida

  • Deal would be clothing retailer’s first foray in South America
  • Pepkor has looked for expansion opportunities outside Africa
Photographer: Waldo Swiegers/Bloomberg
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Pepkor Holdings Ltd., Africa’s largest clothing retailer, is exploring a potential takeover of Brazilian peer Grupo Avenida SA, people familiar with the matter said.

The South African company is considering paying more than 1 billion reais ($190 million) for about a 70% stake in Grupo Avenida, according to the people, who asked not to be identified because the information is private. A deal could provide an exit for Grupo Avenida’s private equity backer, Brazilian investment firm Kinea, the people said.