Billionaire Christo Wiese invests R24 billion in Steinhoff
Christo Wiese, South Africa’s richest man, is investing a further $1.8 billion (R24.3bn) in Steinhoff International Holdings to help finance the furniture retailer’s acquisition spree in Europe and North America.
Steinhoff may raise as much as €2.45 billion ($2.75bn) as it also offered shares to other investors, including a fund that’s linked to South Africa’s programme to promote black ownership, the company said on Wednesday.
Steinhoff shares rose 3.4% to €5.23 at 11:12 in Frankfurt, compared with the stock placing of €5.055, Tuesday’s closing price. On the JSE the share was changing hands 3.7% firmer at R78.79.
Wiese, whose net worth is estimated at $6.6bn (R89.1bn), according to the Bloomberg Billionaires Index, said last month Steinhoff isn’t done with deals as acquisitions are part of the company’s DNA. Steinhoff snapped up UK discount chain Poundland Group and Mattress Firm Holding of the US in the past year as it aims to challenge the likes of Ikea.
“The real story here is around Wiese, confirming the financial backing and the acumen which he brings to the company,” said Mark Hodgson, a Cape Town-based analyst at Avior Capital Markets.
“They are raising more than what I estimated they required, which may suggest there are more deals in the pipeline.”
Steinhoff employs more than 90,000 people and has about 6,500 stores in 30 countries from the UK to Australia. The offering includes new shares and treasury stock.
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