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Embroiled multinational retailer Steinhoff has announced plans to list its crown jewel, discount retailer Pepco in an Initial Public Offering (IPO) on the Polish exchange. Pepco, which operates in a number of jurisdictions throughout Europe, is Steinhoff’s best-performing asset and is valued at approximately $6bn. Steinhoff has lost more than 95% of its market value since accounting irregularities were uncovered by German authorities near the latter end of 2017. Many of the company’s top executives, including the chief executive at the time, Markus Jooste, have been implicated in the largest South African corporate fraud of recent years. Steinhoff requires the green light from its creditors before the IPO can go ahead. Veteran analyst Syd Vienello unpacks the details of the prospective listing and whether the corporate action will be value accretive for current Steinhoff shareholders on the BizNews Power Hour. – Justin Rowe-Roberts
Steinhoff SENS statement:
Steinhoff International Holdings NV (“SIHNV” or the “Company”, together with its subsidiaries, “Steinhoff” or the “Steinhoff Group”) announces that today Steinhoff decided to request the necessary consents from its financial creditors which will allow a listing of the Pepco Group (“Pepco Group”) including the placement of shares held by Steinhoff in the Pepco Group (“IPO”). The determination to proceed with an IPO following the receipt of the consents will be made by the Company in due course.
The Pepco Group is a subsidiary of Steinhoff and is a fast-growing pan-European discount variety retailer, trading from over 3 200 stores in 15 territories across Europe. Pepco Group owns the PEPCO and Dealz brands in Europe and the Poundland brand in the United Kingdom and has a clear vision to become the pre-eminent discount variety retailer in Europe.
On 25 January 2021 Steinhoff announced that the IPO evaluation process had resumed, with a range of strategic options under consideration.
The Company has a primary listing on the Frankfurt Stock Exchange and a secondary listing on the JSE Limited.
- Steinhoff settlement sends shares soaring
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- Steinhoff set to exit crown jewel Pepco to free up cash
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