RETAIL SECTOR
HomeChoice shelves plan for capital raising
HomeChoice has not abandoned the idea and will pursue it if conditions in the retail market improve
Specialist retailer and financial services company HomeChoice has shelved plans for a capital-raising exercise amid a depressed retail sector. The placing of new shares was meant to fund the company’s growth and would have eased the grip of largest shareholders GFM Ltd and DPI on the tightly held stock. GFM, a company linked to founder Rick Garratt, and London-based private equity firm DPI own 70% and 22% of HomeChoice, respectively. HomeChoice CEO Shirley Maltz earlier this year said the share placement would introduce additional institutional shareholders to the group, in a move that would have improved the liquidity of Southern Africa’s largest home shopping retailer. But speaking after the release of the company’s results for the six months ended June 30, Maltz on Monday said the company will not proceed with the share placement at the moment.
She said HomeChoice has not abandoned the idea and will pursue it if conditions in the retail market improve. "The shareholders are...
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