Bloomberg
STEINHOFF International Holdings said a stock-market listing in Frankfurt would probably take place in the fourth quarter of this year, later than initially indicated, as the South African retailer seeks to increase its exposure to investors in Europe.
The group has grown into Europe’s second largest household-goods retailer from being a manufacturer under chief executive Markus Jooste.
Through a number of acquisitions including the 2011 purchase of France’s Conforama it has become an integrated retailer that manufactures, sources and retails furniture and household goods in Europe, Africa and Australasia.
“The company has made substantial progress towards the proposed listing,” the company said yesterday.
The move, which was originally planned to be completed by the end of June, was still subject to market conditions and regulatory approvals, the firm said.
It said it was seeking to sell shares on the Frankfurt Stock Exchange while retaining a listing in Johannesburg.
The retailer has stores in European markets including Germany and the UK. Conforama currently trades in 276 stores.
Strategy
The Conforama group’s strategy in markets including France, Switzerland and Croatia, where its market share was already relatively high, continues to focus on maximising efficiencies and tactical market consolidation opportunities, the company said.
Its R62.8 billion acquisition of Pepkor last year, the largest purchase of a South African company in more than a decade, added exposure to Eastern European countries such as Poland.
The company described Pepkor subsidiary in Eastern Europe as an uncomplicated mono-brand discount retailer focussed on selling clothing, footwear, homeware and seasonal products in central Eastern Europe.
Its growth is expected to continue to be supported by an aggressive store-opening programme but like-for-like growth had also been encouraging.
“The historic growth in the business is now being supported by a formalised process improvement project that focuses on supply-chain, systems, and warehouse capacity and improving people skills,” the company said.
It said its newly acquired MacDan in France was geographically well positioned and will be testing the Pep concept in France, initially via a low risk strategy that would introduce a range of existing Pepkor clothing and non-clothing ranges in the refurbished store network.
The African business (outside South Africa) remained a growth priority for Pepkor, the company said. In the African market the company is focussed on being a discount retailer of clothing footwear and homeware driven by sales volume.
It trades from 484 stores, and kids clothing remains the biggest product category in Ackermans. “The focus is to be the number one value retailer for women with children in their lives by focussing on price, assortment, quality, fashion, and service,” the company said.
Steinhoff fell 3 percent to close at R74.62 yesterday. – Additional reportingby Dineo Faku