Steinhoff refinanced Homestyle in July last year, when it also took a 61 per cent stake in the retailer, which owns the Harveys and Bensons Beds chains. Recent share purchases have taken the holding of Homestyle's top three shareholders above 75 per cent, precipitating an offer, because of market rules that demand a free-float of at least 25 per cent. Discussions are 'at an advanced stage', the retailer reported.
Steinhoff will also offer a share alternative to investors, enabling Homestyle shareholders to receive Steinhoff shares instead of Homestyle's.
Homestyle updated investors on business. It said that beds division 'has been rejuvenated by the appointment of a new management team and is back on an expansion track'.
However, Harveys 'continues to face challenging conditions'. Six smaller shops have been shut 'as the most appropriate store model to generate success is refined' and the business has been restructured. The retailer said: 'We have already made progress in improving elements of our product offer for the important post-Christmas trading period.'
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