December 14, 2016 / 10:42 AM / 7 months ago

BRIEF-Steinhoff, Shoprite in talks to combine their African retail businesses

2 Min Read

Dec 14 () - Steinhoff International Holdings N.V. :

* Value for Steinhoff Africa retail will be negotiated taking into account best interests of both Steinhoff and Shoprite shareholders

* Shoprite will acquire Steinhoff's African retail operations, consisting of Pepkor Africa, JD Group, Steinbuild, Tekkie Town

* From Shoprite's perspective, proposed transaction is expected to position combined co as leading multi-format discount retailer on African continent

* Steinhoff has entered into an in principle agreement with PIC and Titan to acquire their interests in Shoprite as part of proposed deal

* Shoprite shareholders will have election right to retain their exposure to listed retail Africa directly or be free to choose to accept offer, should it be made

* Largest shareholders of both cos, namely PIC and Titan have initiated and facilitated discussions between Steinhoff and Shoprite boards of directors

* Shoprite will issue new ordinary shares to Steinhoff in consideration, pursuant to which Steinhoff will receive a significant equity interest in Shoprite

* Combined group's growth plans could lead to future job creation in various countries.

* Co may be required to extend a mandatory offer based on same exchange ratio to other Shoprite shareholders to acquire their Shoprite ordinary shares Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +91 806 749 1136)

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