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Global conglomerate Steinhoff International has announced plans to raise at least €1.89bn in a new share issue to finance the acquisitions of Mattress Firm and Poundland.

South African-based Steinhoff, which is listed at the Frankfurt stock exchange, confirmed in a statement that it will issue 332 million new shares, representing 8.5% its share capital, at €5.055 each.

Upington Investment Holdings, a company controlled by a family trust of Dr Christo Wiese, chairman and the group’s largest shareholder, has subscribed to 162 million new ordinary shares, worth approximately €819m.

The second subscription is Lancaster 101 Proprietary Limited. The Public Investment Corporation, Steinhoff’s second largest shareholder will facilitate the Lancaster Subscription, worth around €303m.

Furthermore, 110 million new ordinary shares will be offered to institutional investors via an accelerated bookbuild, concluding that if all shares were acquired, the total raised would be around €2.44bn.

Steinhoff recently confirmed the acquisitions of US-based bedding retailer Mattress Firm Holdings for $2.4bn and British value chain Poundland for £597m.

Commenting on the transaction group CEO Markus Jooste said: “We are humbled by the overwhelming support we have received from our two major shareholders backed by our global shareholder basein our capital raising. In addition I would like to thank them for their support on the recent additions of MattressFirm and Poundland.

”My global management teams and I remain confident that our growing scale, global retail footprint, and focus on the value segment of the consumer markets will continue to support good growth and value creation for all our stakeholders.”