S.Africa's Steinhoff raises $277 mln from selling Pepkor shares
09/02/2023 07:37
JOHANNESBURG, Feb 9 (Reuters) - Debt-laden Steinhoff
International SNHJ.J said on Thursday it had raised 4.9
billion rand ($277 million) by selling 265 million shares, or
7.2%, of discount retail subsidiary Pepkor Holdings PPHJ.J .
Steinhoff shares dropped 13.64% at the market open. Pepkor
shares dipped 1.02%.
Following the sale via an accelerated book building process,
Steinhoff's interest in Pepkor, owner of South African clothing
brands PEP and Ackermans, will reduce to about 43.8% from 51%.
"Proceeds from the placing will in due course be used to
de-leverage Steinhoff's capital structure," the retail holding
company, which also has operations in Europe, the United States
and Australia, said.
The company added it continued to view Pepkor as a strategic
investment for the group.
Pepkor has been doing well recently, with shoppers trading
down to cheaper brands as high inflation squeezes spending.
Steinhoff has been looking to reduce its group services debt
of 10 billion euros ($10.7 billion) through asset sales and
listings following a 2017 accounting scandal that prompted about
90 separate legal claims against it.
Last month Steinhoff, which has a primary listing in
Frankfurt SNHG.DE , raised 315.2 million euros from selling a
6.6% stake in its European retail group Pepco PCOP.WA .
($1 = 17.6754 rand)
($1 = 0.9314 euros)
(Reporting by Nqobile Dludla
Editing by Mark Potter)
((nqobile.dludla@thomsonreuters.com; +27103461066;))