JSE-listed and Europe’s second biggest furniture retailer, Steinhoff, wants to acquire 98 percent of issued ordinary shares of South Africa’s struggling furniture retailer, JD Group, for R27. 77 ($2.59) a JD Group share, it said on Wednesday.
Steinhoff’s move has been prompted by the fact that Steinhoff wants to bolster its capacity to boost the troubled JD Group, which is confronted by numerous problems in South Africa’s furniture retail and “consumer finance segments.”
The tender offer – which simply refers to a takeover bid – will give JD Group shareholders an appealing 38.1 percent premium to the present JD Group share price. It will also give them a chance to invest in Steinhoff, which has global exposure.
With this tender offer, Steinhoff also claims it will give JD Group shareholders global limelight and superior liquidity as it has good growth trajectory and the fact that it is the second biggest furniture retailers in Europe.
Steinhoff said the tender offer is open for the taking right away on a first-come-first-serve basis. Steinhoff also urged JD Group shareholders to tender their acceptances without wasting time.Steinhoff In Takeover Bid For JD Group