Share

Steinhoff to sell part of Australian subsidiary as disinvestment drive continues

Steinhoff [JSE:SNH] has announced that its Australian furniture subsidiary, Greenlit Brands, will sell its general merchandise division.

The retail conglomerate, in an update to shareholders, said the division would be sold to Australian capital market company Allegro Funds. The value of the transaction was not disclosed.

"The sale of Greenlit Brands General Merchandise division is a further step in Steinhoff's programme of planned divestments, as we continue with our announced strategy of simplifying the group's portfolio and deleveraging our balance sheet," Steinhoff CEO Louis du Preez said.

Steinhoff has a group debt burden of almost €9bn (R146bn).

Greenlit Brands is an integrated retailer and manufacturer of furniture, household goods and clothing. According to Steinhoff's website it has more than 640 stores in Australia and New Zealand.

In a separate statement , Greenlit Brands said its general merchandise division includes 322 stores with over 6 100 employees. Following the sale, the Steinhoff subsidiary will be left with 319 stores with more than 3 800 employees.

"Disposal of the general merchandise business is a significant strategic initiative which will allow Greenlit Brands to concentrate on its core household goods brands and optimise their already-strong position in the Australian and New Zealand marketsm" it said. 

"In a sense, this transaction sees us return to our roots as a focussed household goods group with a ladder of brands with demonstrable integration and as always, striving for our ambition to achieve remarkable retail," said Greenlit Brands CEO and executive chair Michael Ford.

The transaction is expected to be completed by the beginning of December, and Greenlit Brands will remain a wholly-owned Steinhoff subsidiary.

The announcement comes days after Steinhoff announced it will sell its loss-making UK furniture business, Blue Group, to specialist European retailer Alteri Investors.

Steinhoff stock opened at 92 cents on Monday morning.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders