Steinhoff to sell 10% of Pepkor to help fund settlement offer

Currently, Steinhoff owns 68.2% of Pepkor.

Steinhoff plans to sell up to 370 million ordinary shares of Pepkor to help fund a R25 billion offer in compensation to settle a slew of lawsuits. These plaintiffs are suing the company following the fall in its share price.

The 370 million shares represent a nearly 10% stake in the company, which owns PEP and Ackermans. At the current share price, the stake is worth around R8 billion.

The decision to sell a stake in Pepkor is “subject to achieving an acceptable price,” Steinhoff said in a statement Monday. Participation will be offered to selected investors by bookrunners Goldman Sachs and Investec Bank.

Currently, Steinhoff owns 68.2% of Pepkor.

As part of the settlement, some claimants will receive a portion of their payout in Pepkor stock. Some 300 million shares will be distributed in this way.

Following this settlement, plus the recently announced sale of 10% in Pepkor, Steinhoff could end up with 50.1% in Pepkor.

Steinhoff’s share price fell more than 8% to R2.96 on Monday.

Last week, shareholders in South Africa and the Netherlands voted on the settlement agreement. Steihoff won the necessary majorities, but votes on the settlement agreement will now have to be sanctioned by the relevant courts.

We live in a world where fact and fiction collide

In times of uncertainty, you need trusted journalism. For only R75 per month, you have access to a world of in-depth analysis, investigative journalism, better opinions and a range of features. Journalism strengthens democracy. Invest in the future today.

Previous Singaporean company Sea Ltd secures mega $ 6 billion fundraiser
Next Business News | Stock Market News and Shares | Financial news