$1.5 Billion Breakup: Ibex Dumps Pepkor in Final Divorce from Steinhoff Scandal

Ibex Investment Holdings, once known as Steinhoff International, has officially cut ties with its past. The company just offloaded its entire stake in Pepkor Holdings (PPKRF), South Africa's largest clothing retailer, in a $1.5 billion block sale. The transactionmanaged by Goldman Sachs, JPMorgan, and Investecsaw 1.05 billion shares priced at a 6% discount. But the market didn't flinch. Pepkor shares jumped as much as 3.8% before settling up 1% by mid-morning in Johannesburg.

This exit marks a symbolic and financial break from Steinhoff's scandal-ridden legacy. After collapsing under the weight of an accounting fraud that spanned years and wiped out over 95% of its market cap, Steinhoff rebranded as Ibex in 2023. The Pepkor saleexecuted through its unit Ainsley Holdingscloses a messy chapter that began with the retailer's aggressive global expansion and ended in courtrooms and headlines. With the overhang finally removed, Pepkor may now be in a better position to attract serious institutional inflows.

According to Jean Pierre Verster of Protea Capital Management, the newly freed-up float could be a game-changer: Index-tracking funds may now increase their weight in Pepkor shares. That's not just technicalit's a potential re-rating catalyst. Pepkor, having already distanced itself from Steinhoff by reclaiming its original name, could now focus squarely on its fundamentals without legacy baggage weighing it down. Investors watching the rebirth of a retail heavyweight may want to pay attention.