Steinhoff will battle to get green light for Pepkor sale
Pepkor CEO Leon Lourens says the group will struggle to externalise the funds, given Reserve Bank regulations
Any sale of Steinhoff’s shares in low-cost retailer Pepkor is highly unlikely for the forseeable future, given that the Reserve Bank is likely to block repatriation of funds to Europe, where Steinhoff is domiciled. This was the view expressed by Pepkor CEO Leon Lourens when asked about the possible reorganisation of Steinhoff’s assets that might result in the company selling down its 71% stake in Pepkor Holdings – previously named Steinhoff Africa Retail – and sending the proceeds back to Europe.
Selling the company’s stake in Pepkor was one avenue being considered by Steinhoff, which has seen its market value slide by nearly R200bn since accounting irregularities came to light in December 2017, in its bid to stave off bankruptcy. Pepkor, with brands including Pep and Ackermans, is enormously cash-generative as demonstrated by its recent results, where it generated cash flow from operations of R5.3bn in the financial year to end-September. Steinhoff, which declined to comment...
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