Christo Wiese, South Africa\u2019s richest man, is investing a further $1.8 billion (R24.3bn) in Steinhoff International Holdings to help finance the furniture retailer\u2019s acquisition spree in Europe and North America.<\/p>\n
Steinhoff may raise as much as \u20ac2.45 billion ($2.75bn) as it also offered shares to other investors, including a fund that\u2019s linked to South Africa\u2019s programme to promote black ownership, the company\u00a0 said on Wednesday.<\/p>\n
Steinhoff shares rose 3.4% to \u20ac5.23 at 11:12 in Frankfurt, compared with the stock placing of \u20ac5.055, Tuesday\u2019s closing price. On the JSE the share was changing hands 3.7% firmer at R78.79.<\/p>\n
Wiese, whose net worth is estimated at $6.6bn (R89.1bn), according to the Bloomberg Billionaires Index, said last month Steinhoff isn\u2019t done with deals as acquisitions are part of the company\u2019s DNA. Steinhoff snapped up UK discount chain Poundland Group and Mattress Firm Holding of the US in the past year as it aims to challenge the likes of Ikea.<\/p>\n
\u201cThe real story here is around Wiese, confirming the financial backing and the acumen which he brings to the company,\u201d\u00a0said Mark Hodgson, a Cape Town-based analyst at Avior Capital Markets.<\/p>\n
\u201cThey are raising more than what I estimated they required, which may suggest there are more deals in the pipeline.\u201d<\/p>\n
Steinhoff employs more than 90,000 people and has about 6,500 stores in 30 countries from the UK to Australia. The offering includes new shares and treasury stock.<\/p>\n
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