Steinhoff to sell part of Australian subsidiary as disinvestment drive continues

accreditation

Steinhoff [JSE:SNH] has announced that its Australian furniture subsidiary, Greenlit Brands, will sell its general merchandise division.

The retail conglomerate, in an update to shareholders, said the division would be sold to Australian capital market company Allegro Funds. The value of the transaction was not disclosed.

"The sale of Greenlit Brands General Merchandise division is a further step in Steinhoff's programme of planned divestments, as we continue with our announced strategy of simplifying the group's portfolio and deleveraging our balance sheet," Steinhoff CEO Louis du Preez said.

Steinhoff has a group debt burden of almost €9bn (R146bn).

Greenlit Brands is an integrated retailer and manufacturer of furniture, household goods and clothing. According to Steinhoff's website it has more than 640 stores in Australia and New Zealand.

In a separate statement , Greenlit Brands said its general merchandise division includes 322 stores with over 6 100 employees. Following the sale, the Steinhoff subsidiary will be left with 319 stores with more than 3 800 employees.

"Disposal of the general merchandise business is a significant strategic initiative which will allow Greenlit Brands to concentrate on its core household goods brands and optimise their already-strong position in the Australian and New Zealand marketsm" it said. 

"In a sense, this transaction sees us return to our roots as a focussed household goods group with a ladder of brands with demonstrable integration and as always, striving for our ambition to achieve remarkable retail," said Greenlit Brands CEO and executive chair Michael Ford.

The transaction is expected to be completed by the beginning of December, and Greenlit Brands will remain a wholly-owned Steinhoff subsidiary.

The announcement comes days after Steinhoff announced it will sell its loss-making UK furniture business, Blue Group, to specialist European retailer Alteri Investors.

Steinhoff stock opened at 92 cents on Monday morning.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
16.77
-0.7%
Rand - Pound
20.13
-0.3%
Rand - Euro
17.03
-0.4%
Rand - Aus dollar
11.58
-0.2%
Rand - Yen
0.12
-0.5%
Gold
1,761.60
-0.0%
Silver
19.62
-0.9%
Palladium
2,139.50
-0.2%
Platinum
920.00
-1.0%
Brent Crude
93.65
+1.4%
Top 40
64,267
+0.2%
All Share
71,030
+0.1%
Resource 10
63,300
+0.1%
Industrial 25
87,651
+0.3%
Financial 15
16,123
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders