Catalogue group floats South African arm

Argos owner GUS today outlined plans for the partial flotation of a South African-based retailing business it has owned for more than 50 years.

The group has 18 stores in Ireland, with plans to open more in Dublin, Cork and Galway, and employs a permanent staff of approximately 550. Sales at the Irish Argos outlets reached €181.1m in year to September 2003.

In a move likely to mirror its sale of a minority stake in Burberry in 2002, GUS said it would look to list furniture and household goods specialist Lewis on the Johannesburg stock exchange by early October.

The business was founded in 1934 and acquired by Great Universal Stores as an eight-strong chain from the Lewis family in 1946. It now has 400 outlets across southern Africa and generated sales of £160m (€238m) in the year to March.

GUS, which also owns DIY chain Homebase and the Experian credit checking agency, said the move was “another important step” in the reshaping of its portfolio. That has already seen the sale of the company’s home shopping businesses for £590m (€878m) and a 50% stake in a property joint venture.

Details of the partial flotation have yet to be finalised, with the move dependent on market conditions and the fulfilment of various conditions.

GUS chief executive John Peace said the flotation would benefit the growth of Lewis, which makes most of its sales on a hire purchase basis.

He added: “The Lewis group has a clear strategy for growth underpinned by its strong market position and excellent management team.”