Current Steinhoff shareholders do NOT receive Star shares (you’ll have to buy them on market).
Listing price likely to be low R20’s on PE of around 20x and DY of some 2.2%.
Brands are; Pepcor Africa, Poco, Russels, Flash, Ackermans, Bradlows, Rochester, Buco, Timbercity, The Tile House, Incredible Connection, HiFi Corp, Dunns, John Craig, Refinery, Shoe City and Tekkie Town.
Market cap including Shoprite* stake should be over R100billion and they’ll get into Top40 maybe as soon as December update.
Steinhoff will own 51% of star hence Steinhoff shareholders will be diluted as they currently have 100%.
This dilution is offset by cash received by Steinhoff for the missing Star holdings.
Star owns 50.6% of Shoprite so it will be consolidated into their results and I expect them to make an offer for the remaining holdings of Shoprite in time.
I am not going to be buying Star. I like Pep but less so the furniture brands and never been able to get a grip on the management. That said I do expect them to offer Star shares for Shoprite at some point as they look to take 100% of Shoprite. I will cross that bridge when it arrives.