Steinhoff’s retail spinoff Star lists on the JSE
Steinhoff’s African Retail business unity (Star) has made its debut on the Johannesburg Stock Exchange, the 14th company to list in 2017.
Trading under the ticker of SRR on the JSE, the group opened up trade at a share price of R21.40, climbing to just under R22.00 by midday, giving the company a market cap of R76.3 billion.
The STAR Group operates across retail sectors including apparel, footwear, household goods, furniture, appliances, consumer electronics and building materials, while also providing financial and mobile services.
Some of Star’s well-known brands include Pep and Pep Africa, Ackermans, Bradlows and Incredible Connection. Star’s listing comes after the decision by Steinhoff International Holdings (JSE:SNH) to list the issued share capital of its wholly owned subsidiary on the JSE.
“The decision to separate Steinhoff’s emerging and developed market retail businesses and establish Star was a natural progression, given the business’ distinct strategic and geographic focus,” said Ben la Grange, CEO of Steinhoff Retail Africa.
For the 12 months ended 30 September 2016, the company reported revenue of R51.234 billion, earnings before interest and tax and capital items of R3.485 billion and earnings before interest, tax, depreciation and amortisation and capital items of R4.397 billion.
The listing will also open up the way for Star to revive a previously failed merger with major retailer, Shoprite.
“The Star Group has secured options which, once exercised, will result in Star acquiring a strategic investment in Shoprite, one of Africa’s leading food and grocery retailers with a track record of successful growth and expansion in South Africa and across the continent,” the group said in the weeks leading up to its listing.
Read: Steinhoff to list Star unit on JSE as Shoprite deal is back on
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