Star is coming with a 270-page listing document and PPT wrth reading.
Some important points;
- JSE code: SRR
- Listing 20 September 2017.
- 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.
Simon
Writer holds shares on Shoprite