Interesting new venture
Having failed to get support for its attempted takeover of Shoprite, Steinhoff is trying a new angle that will see it ultimately own the stake held by Christo Wiese and some of the PIC shares. This is being done via call options. The soon-to-be-listed Steinhoff Africa Retail will potentially end up holding 22.7% of the economic interest and 50% of the voting rights in Shoprite. Shoprite will remain listed but controlled by Steinhoff via Steinhoff Africa Retail. Steinhoff Africa Retail will hold all the Steinhoff African assets except for Unitrans.
It is expected to list by the end of September with existing Steinhoff shareholders being given shares in the new Steinhoff Africa Retail. This will certainly be an interesting business with a strong African retail footprint and I’ll have a look at the investment case when it finally lists.