FUNDING
Investors back TFG Australian acquisition
Investors in TFG have had no qualms about stumping up cash to support the retailer’s bookbuild. The retailer, which owns brands such as Foschini, now has an extra R500m after its overnight offer was more than three times oversubscribed. TFG initially planned to raise R2bn in fresh equity to fund its acquisition of Australia’s Retail Apparel Group and TFG chief financial officer Anthony Thunstrom said it could have gone for more, were it not for the resulting share dilution. The shares were priced at R145 — a 0.9% premium to the stock’s 30-day weighted average. Thunstrom said the market "is always inherently sceptical" of Australia as a destination and investors initially had "mixed feelings" about its latest overseas purchase, but added, "we have gone to quite a lot of length to explain the rationale of the transaction". Thunstrom described the Retail Apparel Group as a "mini-TFG" and said the company had "outperformed almost any other retail brand in Australia over the last four ye...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.