JOHANNESBURG - South African furniture firm Steinhoff International said on Tuesday it will buy a 92 percent stake in clothing retailer Pepkor, in a $5.7 billion cash and share deal that gives it exposure to the fast-growing African apparel market.
Steinhoff, a furniture retailer targeting budget-conscious shoppers in southern Africa and Europe, said in a statement it will pay 62.8 billion rand ($5.7 billion) for Pepkor, which runs the Pep brand that sells everything from mobile phones to school uniforms.
Steinhoff will buy the stake from private equity firm Brait and entities controlled by Christo Wiese, one of South Africa's best known businessmen and the top investor in African retail giant Shoprite.
Pepkor is also a prominent retailer in Poland, allowing Steinhoff to accelerate its European expansion.
Steinhoff said it will buy Wiese's 52.7 percent stake for 609.1 million shares at a price of 57 rand each.
It will buy Brait's 37.06 percent for 15 billion rand in cash and 200 million shares.
Shares of Steinhoff rose 2 percent while Brait's shares plunged more than 19 percent.