Steinhoff plans to give Conforama funders enhanced rights
The financiers will be allowed to appoint two independent directors to the French unit’s board
Steinhoff on Monday announced key terms for its French unit Conforama’s plan to raise €316m (R5bn) to shore up its finances after sales fell and costs rose. Steinhoff said the financing included the issue of warrants in an amount equal to 49.9% of Conforama’s shares to the providers of cash, giving the financiers enhanced governance rights and allowing them to appoint two independent directors to Conforama’s board. The financing also includes call protections — a security measure which imposes penalties if a loan is repaid earlier than its maturity date.
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