TFG shareholders approve rights offer amid plans to move to e-commerce
TFG, a large re-seller of Adidas and Nike products, will sell 94-million shares at 42% below their latest closing price in a R3.95bn transaction
In an overwhelming endorsement of Foschini owner TFG’s strategy to ramp investments in e-commerce and expand its discount offering, shareholders almost unanimously backed a deeply discounted R3.95bn fundraising via the sale of new shares.
One the biggest re-sellers of Adidas and Nike products in SA, TFG’s sale of new shares to existing investors, or rights offer, will also help it build cash reserves to withstand the Covid-19 economic shock, which hastened the need to bolster its e-commerce offering and exposed its limited exposure to the vast low-income clothing market. ..