PREMIUM UNCERTAINTY
Shoprite down on jitters over Steinhoff offer
Doubts grow over the prospect of Steinhoff forking out a premium to gain control
The Shoprite share price lost some of its previous day’s gains on Tuesday as doubts grew over the prospect of Steinhoff forking out a premium to gain control. On Monday, the Shoprite share price had ticked up to R199 following the release of a trading update and speculation that the departure of CEO Whitey Basson could lead to a sooner-than-expected tie-up between Shoprite and Steinhoff. Shoprite’s share price closed 1.9% lower on Tuesday at R195.22. Christo Wiese, chairman of both companies and a major shareholder, is known to be keen to bring his operations under one entity. Basson is understood to have opposed the move. His retirement, announced at this week’s annual general meeting, clears the way for Wiese to push ahead with the deal. Investec reckons Wiese will sell voting control of Shoprite by selling Thibault Financial Services to Steinhoff. Because that would trigger a mandatory offer to all Shoprite’s minority shareholders, Investec believes the pricing of the Thibault sa...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.