The two Hungarian businessmen with minority stakes in Extreme Digital, Hungary's leading electronics retailer, have purchased back 50.4% of its shares from South African company Steinhoff International Holdings.

The deal announced on April 25 had been approved by the competition authority GVH earlier this month. 

The South African furniture retailer acquired the majority stake in November 2015. With the transaction, the Hungarian-owned business aimed to speed up its expansion on international markets. 

However, an accounting scandal that hit the South African company changes the picture. According to reports, Steinhoff may have to restate its 2015 accounts or even further back, which has spooked investors and eroded its share prices. 

The negative news surrounding the group also had an impact on the Hungarian subsidiary, even though it was not an integral part of the holding company, CEO Balazs Varkonyi told local media. 

Differences in strategic approach emerged after two years and the Hungarian owners began talks on splitting off from Steinhoff.

Speaking about the two years of work with the South African company Varkoni said: "We have learned the financial, controlling approach and strategic planning while being part of a multinational enterprise."

Extreme Digital, Hungary's leading online electronics retailer with 16 stores, did not rule out finding a new strategic investor to help their planned further international expansion. It opened a Romanian store earlier this year and now is present in eight countries.   

Extreme Digital believes in having a balanced online and offline presence. Brick and mortar stores accounted for 50% of the revenues, which reached HUF35bn (€111mn) in 2017.

Online sales in Hungary have grown robustly, multifold that of retail sales. While retail commerce as a whole expanded by 6% last year, the online market saw growth of 18%, meaning that online sales now account for 4.3% of total retail commerce in Hungary

The growth of the online market appears to be stalling, stabilizing at 18%, the same as in 2016.