Cape Town - The Spar Group said on Wednesday it had raised R2.2 billion through a placing of 11.9 million new Spar shares, which would be used to fund the acquisition of Spar Switzerland and to reduce gearing which had increased as a result of the purchase of Spar Ireland in 2014.
A statement from the company said an accelerated bookbuild offering to qualifying investors announced on Tuesday had been significantly oversubscribed.
Read: Spar grabs stake in namesake Swiss brand
The shares had been placed at R185 each, representing a discount of 0.18 percent to Tuesday’s closing price.
The total number constituted approximately 6.86 percent of the company’s issued share capital.
Spar said the proceeds would be used to fund the purchase of 60 percent of Spar Switzerland, which was announced earlier this month, and to reduce gearing that had increased partly as a result of the acquisition of 80 percent of Spar Ireland in 2014.
The statement added: “The lower level of gearing at Spar will provide Spar with the financial flexibility to continue to invest in existing operations and pursue value-enhancing opportunities.”
ANA