JD Group cuts rights offer by R1.5bn

Comment on this story

Johannesburg - South African furniture retailer JD Group on Wednesday cut the size of its planned rights offer by 60 percent, after agreeing to shift its funding to top shareholder Steinhoff International.

JD Group, which has been saddled with bad debts as cash-strapped consumers failed to make payments, had planned to raise around 2.5 billion rand through a rights offer.

But the company said it will now cut that to 1 billion rand, after controlling shareholder Steinhoff agreed to take over its funding needs.

By scaling back the size of the rights offer, furniture company Steinhoff may be able to keep the unit listed.

Steinhoff owned around 86 percent of struggling JD Group as of last month and a rights offer could have resulted in it raising its stake, forcing it to delist the retailer. - Reuters

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines