Pepkor raises R1.9bn to fix balance sheet

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By Sam Kerr
24 Jun 2020

Pepkor, the South African retailer, raised R1.9bn ($110m) in a sale of new shares on Tuesday night to reduce leverage and to prepare it for the future impact of the Covid-19 pandemic.

Rand Merchant Bank and Morgan Stanley were global co-ordinators on the deal.

The proceeds will be used for the most part to reduce Pepkor’s leverage to roughly 1 times Ebitda from 1.7 times, but some will be used to secure the business against the macroeconomic pressures of the Covid-19 pandemic.

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