Retail group Steinhoff raises capital after acquisitions spree

Industry:    September, 2016

South-Africa based retail and furniture group Steinhoff issued new shares on Wednesday, hoping to collect between 1.89 and 2.45 billion euros ($2.74 billion) to finance a string of acquisitions abroad.

Steinhoff, which is listed on the Frankfurt stock exchange, will issue the shares at 5.055 euros each mainly to institutional and large-scale investors, the retailer said in a statement.

A book runner said the books were covered and would close before the market open.

Steinhoff in early September reported a 3-percent drop in earnings per share, weighed down by an increased number of shares and the weaker rand currency.

The furniture retailer is looking to expand its business abroad and has embarked on a series of acquisitions, the latest being U.S. bedding retailer Mattress Firm and Britain’s Poundland. ($1 = 0.8929 euros) (Reporting by Tina Bellon; Editing by Georgina Prodhan).

 


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