A Steinhoff International Holdings logo on display outside the company's offices in Stellenbosch. (File picture: Business Report)

JOHANNESBURG - Luxury goods group Steinhoff International Holdings said on Monday that it had raised €1 billion, or about R16 billion, by listing and placing 23.19% of its interests in Steinhoff African Retail (STAR).

This comes after Steinhoff listed STAR on the JSE last month and issued 750 million new STAR shares at R20.50 per share under a private placement in a book that was almost five times oversubscribed, raising an aggregate amount of R15.4 billion.

STAR is a wholly owned subsidiary of luxury goods retailer Steinhoff International established in July following an internal restructuring by Steinhoff of its African retail assets.

The retail chain is one of the leading low-cost retailers in Sub-Saharan Africa, with over 4,800 stores including Pep, Ackermans, Timbercity, Buco, HiFi Corp, Incredible Connection and Shoe City. 

STAR’s stabilisation manager Citi Bank also exercised a call option to purchase a further 50 million existing STAR ordinary shares from Steinhoff for delivery to external STAR shareholders under an over-allotment option.

This means that the listing of STAR resulted in the placement of an aggregate of 800 million STAR shares and total capital raised of approximately R16.4 billion.

Steinhoff, which indirectly holds 76.81% of STAR's issued share capital, said that STAR continued to trade above the listing price, valuing STAR at R75.6 billion as at close of business on Friday.