e-spaces

Instore’s majority shareholder was in talks to sell almost 50 percent of its stake, the UK owner of Poundstretcher discount stores has said.

April 30, 2007By Godfrey Mutizwa

Johannesburg – Instore’s majority shareholder was in talks to sell almost 50 percent of its stake, the UK owner of Poundstretcher discount stores has said.

Tradegro, an investment group owned by Tradehold, was planning to cut its stake from 64.6 percent, UK-based Instore said in a stock exchange statement last Thursday, without giving a reason for the sale.

The new owner would hold no more than 29.9 percent – not enough to trigger a takeover bid.

The shareholder was in “advanced negotiations to dispose of part of its holding in the company to a third party”, said Instore.

More information, “including details of any management changes, would be issued when the company released annual earnings, which “will be in line with market expectations”, it said.

The results were scheduled for last week but had been delayed because of the shift in ownership and were “likely” to be announced some time this week, according to a company spokesperson.

Instore shares rose as much 4 percent to £0.24 (R3.40) in London on Friday. Tradehold stock climbed 5.76 percent to R2.75 at the JSE on Thursday, giving the company a market value of R955 million. The general retailers sector gained 1.01 percent.

The company changed its name from Brown & Jackson in 2005. It has 310 stores under its own name and the Poundstretcher brand, and sells pet food, decorations and bed linen.

Tradehold, founded in 1970, is chaired by Christoffel Wiese, the chairman of Shoprite Holdings, South Africa’s second-largest retailer, which is being bought by a group including Wiese and Brait South Africa.

Wiese was not immediately available for comment. – Bloomberg