Johannesburg - Furniture retailer JD Group priced its R2.48bn ($240m) rights offer at its current share price on Friday, to shore up its balance sheet after a spike in bad debts.
Under the offer underwritten by its controlling shareholder Steinhoff, JD Group would sell 99.3 million shares, or 30% of the company, at R25 each to raise R2.48bn ($240m).
Shareholders would get 44 new rights offer shares for every 100 held, JD Group said in a statement. Shares in the struggling company hardly moved on the news and were down 0.6% at R24.84 at 15:13 GMT.
Steinhoff, which built up its stake to 86% from 57% in recent weeks by offering its own shares exchange for those in JD Group, could end up owning all of the credit-based retailer and potentially delist it.
Steinhoff has said it would provide quick and much-needed financial support to the company, which is saddled with bad debts because of cash-strapped consumers failing to make payments.
JD Group also said chief executive officer David Sussman, whose is on leave for personal reasons, will retire and acting CEO Peter Griffiths will take over from Monday.
Under the offer underwritten by its controlling shareholder Steinhoff, JD Group would sell 99.3 million shares, or 30% of the company, at R25 each to raise R2.48bn ($240m).
Shareholders would get 44 new rights offer shares for every 100 held, JD Group said in a statement. Shares in the struggling company hardly moved on the news and were down 0.6% at R24.84 at 15:13 GMT.
Steinhoff, which built up its stake to 86% from 57% in recent weeks by offering its own shares exchange for those in JD Group, could end up owning all of the credit-based retailer and potentially delist it.
Steinhoff has said it would provide quick and much-needed financial support to the company, which is saddled with bad debts because of cash-strapped consumers failing to make payments.
JD Group also said chief executive officer David Sussman, whose is on leave for personal reasons, will retire and acting CEO Peter Griffiths will take over from Monday.