Steinhoff revisits floatation plan
Steinhoff International has revived plans for a stockmarket flotation of its European – including the UK – division.
According to Bloomberg, the South African group has been speaking to banks about a potential share sale as it seeks to unlock value from its pan-European operations. Steinhoff gets more than half of its sales from Europe.
According to Bloomberg, Steinhoff would retain a majority stake in the division.
It has not yet formally mandated investment banks, and could still decide not to proceed with the listing this year. Markus Jooste, Steinhoff ceo, first signalled the possibility of a separate listing in early 2012, before concern about the solvency of some Eurozone governments rocked equity markets.
A listing on the Frankfurt stock exchange could be used to give Steinhoff more flexibility in future acquisitions, since it would have the option of issuing stock in a market that was more familiar to international investors than South Africa's.
A spokeswoman for Steinhoff declined to comment.