Why billionaire Christo Wiese's retail vision faces hurdles
Christo Wiese,South Africa’s fourth-richest person with a fortune of about $5.7 billion, is at the center of plans to create the continent’s largest retailer
Here’s why a transaction makes sense for the 75-year-old billionaire and why a deal may face opposition from minority shareholders and antitrust authorities. Why are Shoprite and Steinhoff proposing to merge? The proposal is for Cape Town-based supermarket chain Shoprite to buy Steinhoff’s African retail assets in exchange for an undisclosed yet significant equity interest. This could lead to Steinhoff taking control of Shoprite via a buyout offer to minority shareholders. Talks on pricing and structure are ongoing and some investors and analysts expect the companies to announce an outcome in coming weeks. That helps Wiese bring part of his 23% stake in Steinhoff and his 16% share in Shoprite under one roof. It may ultimately also help bring both companies under Steinhoff Chief Executive Officer Markus Jooste, a friend and business partner for two decades. “He appears to have anointed Markus as the person he has entrusted with the family jewels,” said Sasha Naryshkine, an analyst at...
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