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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