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Steinhoff plans to sell up to 370 million ordinary shares in Pepkor to help fund an offer of R25 billion in compensation to settle a large group of lawsuits. These claimants are suing the company following the plunge in its share price.
The 370 million shares represents a stake of almost 10% in the company, which owns PEP and Ackermans. At its current share price, the stake is worth around R8 billion.
The decision to sell a stake in Pepkor is "subject to acceptable pricing being achieved", Steinhoff said in a statement on Monday. The stake will be offered to selected investors, by book runners Goldman Sachs and Investec Bank.
Currently, Steinhoff holds 68.2% of Pepkor.
As part of the settlement, some claimants will receive a part of their payout in Pepkor shares. Some 300 million shares will be distributed in this way.
Following this settlement, plus the newly announced sale of 10% in Pepkor, Steinhoff may be left with 50.1% in Pepkor.
Steinhoff’s share price fell by more than 8% to R2.96 on Monday.
Last week, shareholders in South Africa and the Netherlands voted on the settlement deal. Steihoff received the necessary majorities, but the votes on the settlement deal will now have to be sanctioned by the relevant courts.
