Chairman Wiese set to gain from Steinhoff share issue
STEINHOFF will replenish its coffers by issuing new shares to a select number of investors, but most of them will end up with the company’s largest shareholder and chairman, Christo Wiese.The move comes after the acquisitions of Poundland in the UK and the Mattress Firm in the US. Both deals were closed at premium prices.The retail giant has said it will issue a total of 332-million new shares, representing 8.5% of its share capital. A little under half of the shares — 162-million — will be subscribed for by Upington Investment Holdings, a firm controlled by a family trust of billionaire investor Wiese.The Public Investment Corporation (PIC) will facilitate a subscription of 60-million new shares for Lancaster 101; and an additional 110-million new shares will be offered to institutional investors by way of an accelerated book build, the company said. The new issue amounts to just under R30bn.Electus Fund Managers equity analyst Neil Brown said that as an acquisitive business, it wa...
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