SHF
Steinhoff Acquires An Interest In PG Bison.
Steinhoff International Holdings Limited
Steinhoff International Holdings Limited has acquired, through its wholly-
owned subsidiary Steinhoff Africa Holdings, a strategic minority interest in
PG Bison Holdings (Pty) Limited for an undisclosed sum. This acquisition is
in line with Steinhoff's strategy of acquiring interests in well-managed
businesses whose activities and profitability could be complemented in terms
of value added initiatives by Steinhoff. These initiatives are aimed
primarily at the optimisation of synergies that are evident between the two
businesses, especially in relation to Steinhoff Africa's Export Division and
its Timber and Sawmilling interests.
Danie van der Merwe, managing director of Steinhoff Africa says:"The
investment in PG Bison represents a strategic step in line with our stated
intention to enhance the Steinhoff Group's export realisations from Southern
Africa."
He goes on to say: "The distribution base that PG Bison brings to the table
opens up access to local markets in which Steinhoff Africa is not currently
operating."
The CEO of PG Bison, Chris van Niekerk, has stated:"We are delighted to have
a partner like Steinhoff on board whose interests are aligned with ours. Our
joint priority is to grow the business within the boundaries of prudent
financial norms, in the interests of all our stakeholders and ultimately the
South African economy as a whole. A particular attraction of the deal with
Steinhoff is the access to world markets that Steinhoff can bring about
through its world-wide infrastructure and networks.
"We have also spent a considerable amount on a new component plant in
Boksburg and have upgraded certain of our other plants at great cost. The
component plant allows PG Bison to enter into the higher margin value added
products business that could beneficially utilise Steinhoff's international
networks. We are pleased that PG Bison is now extremely well-positioned,
both financially and otherwise, to fully reap the benefits of the
disciplines instilled and maintained after the leveraged buy-out from its
former parent in 1998."
"PG Bison has redeemed the major portion of LBO debt through internal cash
generation, and is currently in a position where its financial ratios fully
comply with those imposed by Steinhoff for its own purposes" van Niekerk
says.
Steinhoff has funded this acquisition through a vendor consideration
placement of shares with a number of local institutions.
Wynberg, 23 May 2002.
Date: 23/05/2002 05:19:06 PM Produced by the SENS Department
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