Shearman & Sterling advised The Foschini Group Limited (TFG) in connection with its R3.95 billion rights offering.
The proceeds of the rights offering will be used to reduce indebtedness and insulate the balance sheet ahead of an expected sustained period of economic uncertainty, to pursue TFG's organic growth strategy and further leverage TFG's existing brands to gain market share, to continue investing in TFG's retail platform and digital transformation journey and to ensure that TFG has the ability to take advantage of market opportunities in line with its current strategy and which meet its investment criteria.
TFG is one of the foremost independent non-food chain-store groups in South Africa and has significant operations in Australia and the United Kingdom. Headquartered in Cape Town and listed on the Johannesburg Stock Exchange, TFG has a portfolio of 29 leading retail brands, with over 4,000 outlets in 32 countries and on five continents. TFG's brands offer a variety of lifestyle products including clothing, jewellery, cell phones, accessories, cosmetics, sporting apparel, homeware and furniture from value to upper market segments.