JD Group: Rights offer cut as Steinhoff steps in

Furniture retailer JD Group cut the size of its rights offer by 60 percent yesterday, after agreeing to shift its funding to controlling shareholder Steinhoff International. Saddled with bad debts as cash-strapped consumers failed to make payments, it initially planned to raise about R2.5 billion through the offer. But the firm said it would cut that to R1bn, after Steinhoff agreed to take over its funding needs. By scaling back the offer, furniture maker Steinhoff may be able to keep the unit listed. Steinhoff owned around 86 percent of JD Group as of last month and a rights offer could have resulted in it raising its stake, forcing it to delist the retailer. JD Group shares rose 1.06 percent to close at R26.58 yesterday; Steinhoff shares fell 0.45 percent to R53.61. – Reuters