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RPT-UPDATE 1-Steinhoff to acquire Australia's Fantastic Holdings for $274 million

Published 17/10/2016, 07:25 am
RPT-UPDATE 1-Steinhoff to acquire Australia's Fantastic Holdings for $274 million
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(Repeat story published on Friday)

JOHANNESBURG, Oct 14 (Reuters) - South Africa's Steinhoff International SNHG.DE plans to buy Fantastic Holdings FAN.AX for 361 million Australian dollars ($274 million), the Sydney-based retailer said on Friday, sending both firms' shares higher.

The companies had agreed on a scheme under which Steinhoff's Asia Pacific unit proposes to acquire all of Fantastic Holdings' issued shares, the Australian firm said in a statement.

The proposed offer of 3.50 Australian dollar sent Fantastic's shares soaring to a six-year high on Wednesday, ending the day 40 percent higher on 3.43 Aussie.

Steinhoff's shares rose 3.4 percent in Frankfurt to 4.7970 euro and 2.8 percent in Johannesburg at 74.89 rand by 1116 GMT.

The South African furniture and general retailer, which is expanding its business abroad, last month raised capital after a string of acquisitions. most recent buys include Britain's Poundland and U.S. bed seller Mattress Firm. Holdings is a complementary business in terms of market segments, customer base and vertical integration," Steinhoff Asia Pacific director Tim Schaafsma said in the same statement.

Steinhoff was not immediately available for further comment.

Major shareholders, holding more than 50 percent in Fantastic Holdings, have indicated they will vote in favour of the deal, the Australian firm said.

Fantastic, which operates chains such as Fantastic Furniture, Plush, Le Cornu and Original Mattress Factory, has 126 retail stores in Australia.

($1 = 1.3187 Australian dollars)

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