Steinhoff Asia Pacific Open To IPO As Parent Slumps
Recent reports reveal Steinhoff Asia Pacific is eyeing an IPO, as its parent company continues to face the aftermath of accounting irregularities, coupled with an inquiry from German regulators.
According to The Australian, Steinhoff Asia Pacific could list on the ASX as early as this year.
The company is the owner of retailers such as Freedom Furniture, Fantastic Furniture, Best & Less, Snooze and POCO, and is lead by former The Good Guys CEO, Michael Ford.
Steinhoff Asia Pacific was also the under bidder to JB Hi-Fi in its acquisition of The Good Guys.
Considered the ‘profitable’ arm of the retail conglomerate, Steinhoff Asia Pacific’s local management is reportedly being assisted by advisory firm Rothschild.
In lieu of an IPO, some analysts speculate the company may opt to sell to a private equity firm, with a dual-track process.
Reports suggest whilst TPG Capital and The Carlyle Group have explored options for Steinhoff, they are unlikely to be the local company’s suitors.
Steinhoff Asia Pacific reportedly has a bank debt of $170 million, and owes its parent company $333 million. Land and buildings are said to be worth $120 million.
Officially, the company states it is not for sale, however, The Australian reports a data room has been opened with Ferrier Hodgson for prospective buyers.
In latest annual report, Steinhoff’s local arm claims concerns surrounding its parent company’s accounting irregularities could have the potential to impact the Asia-Pacific business.