Supermarket chain Shoprite confirmed on Friday that Steinhoff Africa Retail Limited (STAR) has exercised call options to acquire a 23.1% stake and 50.6% voting control in the company.
In August, STAR said it was looking to acquire a controlling stake in Shoprite in a share deal worth R35.5 billion rand that would give it exposure to shoppers in South Africa and 14 other African markets. Shoprite said STAR’s investment would be subject to a number of conditions including various merger filings.
STAR, a low-cost retailer, boasts over 4,800 stores in Sub-Saharan Africa. It was established on 1 July 2017 following an internal restructuring by Steinhoff of its African retail assets.
The company operates across various stable and growing sectors, including apparel, footwear, household goods, furniture, consumer electronics, appliances, general merchandise and building materials, while also providing financial and mobile services.
The deal was reportedly the idea of retail magnate Christo Wiese, who owns 16% of Shoprite and 23% of Steinhoff, and would have given Steinhoff a major interest in the R110 billion Shoprite.