GUS to spin off South African retail
Partial IPO for Lewis Group
GUS is pushing ahead with plans for a partial IPO of Lewis Group, its South African retail business.
Following the successful model used with fashion group Burberry last year, GUS will retain a stake in the business Lewis is launched on the JSE Securities Exchange South Africa.
A prospectus will be sent out in mid-September, with a tranche of shares made available to institutional investors outside South Africa.
GUS, owner of the Argos and Homebase chains in the UK, said the Lewis listing is an opportunity to release value for shareholders, ‘while enhancing the development opportunities for the Lewis group’.
GUS Chief Executive John Peace said: “The plan to float part of the Lewis group is another important step in reshaping the GUS portfolio, by focusing it on fewer activities. The Lewis group has a clear strategy for growth underpinned by its strong market position and excellent management team.”
GUS acquired the business from the Lewis family in 1946. It operates 465 outlets, and along with furniture sells household appliances and electricals.
