Steinhoff to raise up to €2.4bn to fund acquisition spree
It will raise at least €1.89bn as it issues new shares to fund the purchase of Poundland in the UK and Mattress Firm in the US
STEINHOFF plans to raise at least €1.89bn in a new share issue, to fund the acquisition of Mattress Firm and Poundland.The South African company, which moved its primary listing to Frankfurt in 2015, acquired UK-based Poundland for £597m in July. In August, it made a move on US-based Mattress Firm Holdings for $2.4bn.The company said in a Sens statement on Wednesday that a total of 332-million new shares, representing 8.5% its share capital, will be issued to select shareholders. The new issue amounts to a bit less than R30bn.Upington Investment Holdings, a company controlled by a family trust of billionaire investor Christo Wiese, who is the chairman of the group, has subscribed to new shares.The Public Investment Corporation will facilitate the Lancaster subscription.Steinhoff also announced an accelerated bookbuild to enable institutional investors to subscribe for 110-million new shares. If all of those are taken up, the total raised will be about €2.4bn.Steinhoff segments itsel...
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