JD Group: Shares soar after Steinhoff offer

JD Group shares shot up 28.4 percent to R28.21 yesterday after Steinhoff announced its plans just before the market closed to acquire 98 percent of the furniture retailer’s issued ordinary shares. Steinhoff, which owns 56.8 percent already, said it had received commitments from several JD Group shareholders to accept the offer. Steinhoff said it made the move because JD Group, which owns Russells, Morkels and Joshua Doore, was facing challenges in the furniture retail and consumer finance business segments, which would take some time and additional capital to overcome. The increase of its stake in JD Group would enhance Steinhoff’s ability to support the group’s operations. JD Group shareholders accepting the offer will get one Steinhoff share for every 1.9 JD Group shares. Steinhoff shares rose 1.06 percent to R53.45 yesterday. – Nompumelelo Magwaza