Steinhoff biggest listing in Germany this year

With a market capitalisation of about €19bn, the listing of Steinhoff International Holdings N.V. (Steinhoff N.V.) on the Frankfurt Stock Exchange (FSE) on Monday is the largest prime standard listing in Germany this year.

Although the listing of Steinhoff shares on the main board of the JSE terminated on Monday, Steinhoff N.V. will have a secondary listing on the JSE going forward.

Steinhoff N.V. - formerly Genesis International Holdings - acquired the entire issued ordinary share capital of JSE listed Steinhoff International Holdings (Steinhoff) for a consideration of one fully paid Steinhoff N.V. ordinary share for each Steinhoff ordinary share held.

Markus Jooste, CEO of Steinhoff said the new arrangement will raise the international profile of the group.

“This listing will enhance Steinhoff’s ability to access global capital markets, to further support the expansion of our European operations and growth opportunities available in international markets,” said Jooste.

“Given that the majority of Steinhoff’s revenues are generated outside South Africa, a listing on a major European stock exchange more accurately reflects the geographic location of our revenues, customers and store locations.”

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Steinhoff plans to continue expanding into new markets. Its acquisition of Pepkor earlier in 2015 provides expansion opportunities in Africa and Europe, while the existing infrastructure and footprint allow it to accelerate its expansion into Europe.

Steinhoff manufactures, sources and retails furniture, household goods and general merchandise in Europe, Australasia and Africa.

It employs over 90 000 people and has a presence in 30 countries worldwide. The company generates over 60% of its revenues from Europe.

By revenue it is currently the second largest household goods retailer in that region with a focus on the value conscious consumer.

Last week Steinhoff said German authorities searched its offices in November in connection with tax investigations, ahead of the FSE) listing.

Authorities were reviewing the balance sheet treatment of certain transactions. Steinhoff said it believes the matter has been properly reflected in its group accounts.

Source: Fin24