South Africa’s Steinhoff offers $99 mln for rest of JD Group

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JOHANNESBURG household goods firm Steinhoff has offered 1.2 billion rand ($99 ) for shares it does not already own in furniture retailer JD Group, it said on Tuesday.

Shares in JD Group, in which Steinhoff owns nearly 90 percent, jumped 17.50 percent to 32.90 by 1139 GMT on the news.

Under the deal, Steinhoff offered 34 rand per share for the stake it does not already own – a 21 percent premium on Monday’s closing . The deal values JD Group at about 8 billion rand, according to Thomson Reuters calculation.

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Steinhoff said the deal would help eliminate costs associated with the listing of the unit on the Johannesburg bourse and give it enhanced flexibility to make structural changes in the ailing retailer.

JD Group, along with retailers in Africa’s most advanced economy, has been struggling in recent years as consumers battling job losses and high personal debt levels cut back on spending.

Steinhoff said investors holding about 56 percent of the remaining shares have given irrevocable undertakings to accept the offer.

($1 = 12.1190 rand)