Due to strong demand, the company increased its initial placing from 240 million shares, which is approximately 6.5% of Steinhoff’s 51% majority share in Pepkor, to 265 million shares, successfully raising its interest sold to 7.2%.
By placing each share at a price of R18,50, the company made total gross proceeds of R4.9bn, it confirmed last week.
This reduces the company’s share in Pepkor, which owns Pep, Ackermans, Shoe City, JD Group and The Building Company from 51% to 43.8% and increases the free float in Pepkor from 49% to 55.5%.
Steinhoff International had made similar share placements in January this year when it diluted 6.6% of its share in European retailer, IBEX Retail Investments (formerly Pepco) for €315.2 million (R5.79 billion).
Steinhoff remains the majority shareholder in Pepkor and proceeds from the share placing will be used to cut down its debt.
[Image: steinhoffinternational.investoreports.com, https://commons.wikimedia.org/w/index.php?curid=40436160]