The splitting of Steinhoff's local and European assets may put the Shoprite and Steinhoff merger back on the table. But — to woo investors — majority shareholders will have to sweeten the deal. Earlier this year, shareholders opposed the transaction as the biggest shareholders Titan, Steinhoff and the Public Investment Corporation (PIC) could not reach agreement on the exchange ratio for the share exchange. This week, Steinhoff announced plans to separate its European and African operations into two companies, which would be listed separately. Soria Hay, head of corporate finance at independent investment banking firm Bravura, said that it might be easier for Shoprite to merge with Steinhoff's African operations if the assets were separated. Yet there is still a big difference between what people would consider a grocer — Shoprite — and the retail, furniture and clothing operations that form part of Steinhoff. Hay said a separate listing of Steinhoff's African operations was an oppo...
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