Steinhoff International’s European chain Pepco Group could be up for sale.
This is according to a report in Sky News saying that the group, which is at the centre of South Africa’s largest corporate fraud, is in talks to sell Pepco for €4.5billion (R86.5 billion).
Sky says Advent International, which sold Poundland for £200 million to Steinhoff a decade ago, has joined with Hellman & Friedman and Mid Europa Partners to retake control of Pepco.
If this deal is to go ahead, it will provide Steinhoff with much-needed liquidity after it was forced to write off billions leading to, and resulting in the collapse of its share price from R53.80 to under R5 in a matter of days at the end of 2017.
The fall in the value of its shares led several shareholders, including its former chairman Christo Wiese, to take legal action against the group.
News that Pepco is possibly for sale saw Steinhoff’s share price rally by almost 50% to R1.60 from its opening of R1.09 this morning.