Steinhoff International Raises ZAR7.1 Billion in PSG Group Share Placing -- Update

01/22/18 10:55 AM EST

(Adds amount raised and share price.)

 
   By Adria Calatayud and Oliver Griffin 
 

South African retailer Steinhoff International Holdings NV (SNH.JO) said Monday that it raised about 7.1 billion South African Rand ($582.5 million) via a placement of shares in investment company PSG Group Ltd. (PSG.JO) through a bookbuild.

Steinhoff--which holds a 16% interest in PSG, according to FactSet--placed 29.4 million shares as part of its efforts to stabilize and deleverage its accounts, at a price of ZAR240.00 a share, it said.

The company said it would issue the shares with institutional investors, subject to certain conditions including achieving an "acceptable" placing price.

The South African retailer said placing is part of the refinancing measures it announced last week.

On Jan. 18, Steinhoff said it would seek refinancing for its South African debt as soon as possible and that it planned to sell a limited number of assets to further raise liquidity.

Shares in the company tumbled in December after it disclosed accounting irregularities in its 2017 results and said it will have to restate its 2016 financial accounts.

 

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com and Oliver Griffin at oliver.griffin@dowjones.com

 

(END) Dow Jones Newswires

January 22, 2018 10:55 ET (15:55 GMT)

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