South African furniture retailer Steinhoff increases stake in Darty to 20.4%

Johannesburg and Frankfurt-listed firm Steinhoff has increased its stake in Darty, Europe’s third-largest electric goods retailer, to 20.4 percent.

Darty’s shares rose by more than 23 percent on Thursday to their highest since the end of 2010 on the London Stock Exchange, as it got five new offers in less than 24 hours. South Africa’s Steinhoff offered 160 pence for each share, valuing Darty at 860 million pounds ($1.2 billion). Its offer was the highest, beating French rival Fnac.

South African furniture retailer Steinhoff said on Friday it had acquired an additional 4.8 million shares in Darty at 160 pence each.

Steinhoff expects the deal to increase its income in Europe where it already makes more than two thirds of its €9.8 billion ($11 billion) of annual sales, as South Africa’s economic woes affect local sales. The company reported a revenue of €6.7 billion for the six months ended December 31 2015 compared to €4.6 billion at the same period in the previous year.