Steinhoff International is considering an initial public offering of Pepkor Europe. File Photo: IOL

JOHANNESBURG – Steinhoff International is considering an initial public offering of Pepkor Europe, its fastest-growing unit, as the scandal-hit South African retailer seeks funds for the next phase of its recovery plan, people familiar with the matter said.

The company has been discussing a listing of Pepkor Europe with potential advisers, according to the people, who asked not to be identified because the information is private. The business – which owns the Pepco and Dealz chains as well as Poundland in the UK – could sell shares in the next year, the people said.

Steinhoff shares surged as much as 7.4 percent in Frankfurt, where the company has its main listing.

The retailer is considering selling shares of the Pepkor Europe unit in London, though a Warsaw listing is also a possibility, the people said. No final decisions have been made, and Steinhoff could pursue other options for the business, the people said. A representative for Steinhoff declined to comment.

Steinhoff is looking at ways to raise cash as it works through the final stages of its debt restructuring, which is scheduled to be completed by an August 9 deadline agreed by creditors. The company’s shares have lost more than 90 percent of their value since December 2017. 

Bloomberg