The Foschini Group will be proceeding with a rights offer aimed at raising up to R3.95 billion, the fashion retailer said on Thursday.
This follows an extraordinary general meeting held early in the day, where the board of directors resolved to proceed after the majority of shareholders gave the green light to special resolutions that would allow the directors to issue new shares.
The group, which owns several brands including Totalsports, Markham, Fabiani, Foschini, and American Swiss, announced the proposed rights offer on 18 June, in a bid to strengthen its balance sheet and prepare for potential future shocks caused by the coronavirus pandemic.
At the time of the announcement, TFG said the R3.95 billion would also be used to help TFG’s existing brands to gain market share and grow the company's retail and e-commerce offerings. CEO Anthony Thunström initially said the group had no interest in buying any of struggling retailer Edcon's businesses, but has since made a R480 million offer to buy JET stores.
The group's rights offer will consist of 94 270 486 renounceable rights to subscribe for new TFG shares, in the ratio of 40 right offer shares per 100 TFG ordinary shares, at a subscription price of R41.90 per rights offer share.