JD Group: Rights offer cut as Steinhoff steps in

Comment on this story

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

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