says chairman.
It seems likely that Steinhoff International will be keeping its majority shareholding in Steinhoff Africa Retail (Star) for the foreseeable future as agreements with its creditors should rule out the need for urgent asset sales.
Star chairman Jayendra Naidoo certainly does not expect the parent company to be a forced seller of the retailer’s shares.
Naidoo was speaking during an interview with Business Day after the company obtained approval last week to change its name to Pepkor Holdings and as it considers a life in the not too distant future that may not include Steinhoff as a shareholder. "We are not actively trying to get Steinhoff to reduce their shareholding. The lock-up agreement [Steinhoff is implementing with its creditors] means they will not be compelled to make any substantial payments to their creditors during the period, and I am pleased they are not going to be a forced seller."
Naidoo did acknowledge that Star had received several informal approaches from potential acquirers. "We are quite neutral about who the shareholders of the company are or should be. It is positive for Star that there is appetite from a wide range of investors who would be interested if large blocks of shares become available. Neither are we considering issuing any shares.
"Once Steinhoff has completed its lock-up agreement, and is on steadier long-term ground, we may hear news about what they want to do with their shareholding, but at this time I have not been informed of any decision on their part to sell Star shares."
Was one of those individuals showing interest Christo Wiese, the founder and outright owner of Pepkor until its merger with Steinhoff in 2015?
"I would not be surprised if Dr Wiese wanted to own shares again. After all, he did build the group up over decades. And he would be welcome to buy Star shares should he wish to do so. But I expect he is unlikely to do that at this moment, given he is more likely to focus on the claims he has instituted at Steinhoff," Naidoo said.
After a tumultuous few months in the wake of the Steinhoff disclosures, the company had to deal with its own challenges, including having to validate its financial statements, refinancing R16bn of debt, dealing with the controversial guarantee underwritten to executives as well as the management walk-out at its wholly owned subsidiary, Tekkie Town.
The issues all weighed on the firm’s share price, which fell from about R21 at the middle of April to its current R16.60.
Naidoo said he was not expecting any further negative shocks and wanted to get back to business. "The more the remaining corporate issues are fully addressed, the more the management will be able to focus on organic business issues. We have just got shareholder approval for the change of name, so once the regulatory steps are completed, Star will be renamed Pepkor Holdings," he said.
The urgency of having to put out fires has also meant Star has not been paying any attention to acquisitions and disposals.
But in light of media reports that Star was interested in bidding for the assets of sister company Pepco in Eastern Europe (owned by Steinhoff), Naidoo was not opposed to the concept of reuniting various assets of the original Pepkor that had been retained by Steinhoff post the merger and subsequent listing of Star.
"Pepkor Europe and Pepkor Africa are still joined together in many respects," said Naidoo.
"Whether it be from joint sourcing, management philosophy and traditions, or informal relationships. There is definitely an argument for bringing the two parts of Pepkor back together, so it is something the board of Star would be interested to look at. But, obviously, it would have to … deliver value to all stakeholders and be conducted on commercial terms."
With only a few Steinhoff representatives on the reconstituted board, Naidoo thinks Star now has the autonomy to chart its own course, and that might mean entering markets in which its parent company operates.
"Star’s retail traditions are, by its nature, global. In due course, Star could move into other markets and become a more global company. We see ourselves as an autonomous company with Steinhoff as a major shareholder. Apart from the shareholding, Star operates independently of Steinhoff.
"We are open to new possibilities, but will remain prudent and commercial. It is ultimately about creating wealth for all stakeholders, so we’ll do what makes good business sense," Naidoo said.
Quelle: www.businesslive.co.za/bd/companies/...s-stake-says-chairman/