Steinhoff raises R7.8bn to fund expansionComment on this story
London - Steinhoff International, South Africa’s biggest furniture chain, will raise about R7.8 billion in a share offering to strengthen its financial position in its home market ahead of a secondary listing in Frankfurt.
The sale of about 150 million new shares to international investors and an additional rights issue for existing shareholders will raise about 17.8 billion rand after transaction costs, the Johannesburg-based company said in a statement today.
The new shares were sold at 52 rand cents each, a 12 percent discount to the 59.04 rand price at yesterday’s market close.
The retailer said last week it’s seeking a secondary listing on the Frankfurt Stock Exchange to increase its exposure to investors in Europe, its biggest market.
Steinhoff gets about half its revenue from continental Europe, where it owns French retailer Conforama.
The proceeds “will be repatriated to South Africa and used to strengthen the balance sheet and will give the company greater flexibility to continue the growth of its retail operations,” the company said.
The South African Reserve Bank made the transfer of cash to Steinhoff’s home market a condition when it approved the German listing.
The company said last week it will reduce its stake in KAP Industrial to about 45 percent from 62 percent through a sale of shares in the manufacturing unit. - Bloomberg News