Steinhoff Africa fails to attract Remgro interest – report

Steinhoff Africa Retail Ltd may have to eliminate billionaire Johann Rupert’s Remgro Ltd from a list of potential new investors as it seeks to distance the retailer from its scandal-hit parent, according to people familiar with the matter.

STAR, as Steinhoff Africa is known, asked Stellenbosch-based Remgro for a meeting about whether it would be interested in taking a stake, said the people, who asked not to be identified because the talks were private. Remgro is unlikely to proceed, they said.

Remgro’s investments include hospital company Mediclinic International Ltd and wine and spirits producer Distell Group Ltd.

Management of STAR engages with many investors and the nature of the discussions don’t require a stock-exchange statement, a spokeswoman said in an emailed response to questions. Remgro declined to comment.

Last week, STAR said it will revert to the name Pepkor Holdings Ltd to separate itself from Steinhoff International Holdings NV, which in December reported accounting wrongdoing that wiped more than 95% off its market value.

Steinhoff bought Pepkor for $5.7 billion in 2015 before spinning off most of it as STAR three years later. It holds a 71% stake in the Cape Town-based clothing retailer.

STAR’s stock snapped two days of declines, advancing 4.8% to R17.56 and valuing the clothing retailer at R60.4 billion ($4.8 billion). The meeting between STAR and Remgro was earlier reported by Johannesburg-based newspaper Business Day.

Read: Steinhoff Africa declines as it struggles to break from parent

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Steinhoff Africa fails to attract Remgro interest – report