Steinhoff Would Retain Significant Stake in Mattress Firm Following IPO

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By Maria Armental
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According to a securities filing, Steinhoff International Holdings NV, owner of Mattress Firm Group Inc., will retain a significant stake in the company following a planned initial offering.

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According to documents released Friday, Steinhoff, which emerged from bankruptcy protection in late 2018, will not sell any stock in the offering.

Some of Steinhoff’s creditors are involved in selling to stockholders, the Matters firm said in the documents, noting that it is not involved in pending litigation and disputes involving Steinhoff, the disputes could weigh on Matters firm’s stock performance.

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In addition, the company noted in documents filed with the Securities and Exchange Commission: “The Steinhoff Group has obligations under a number of debt instruments and may have obligations pursuant to various disputes and legal and regulatory proceedings that may be satisfied by a sale or other transfer.” of our common stock, which may materially reduce the market value of our common stock.”

In 2017 the South African furniture retailer uncovered a series of accounting irregularities that led to a series of legal challenges, mostly in the Netherlands and South Africa. A proposed global settlement is valued at around 1.43 billion euros ($1.62 billion), according to the documents.

Mattress firm disclosed in September that it had filed documents for a potential IPO, without giving any details, such as who would be the selling stockholders if it eventually pursues the offering.

Documents that were disclosed Friday also don’t give much detail on the planned offering, such as the number of shares sold, but offer a glimpse into the company’s financial performance.

The company reported a loss of $165.1 million for the year ended September 28, while its revenue rose nearly 35% to $4.39 billion. As of September 28, the mattress firm had 2,353 company-run retail stores and 70 distribution centers.

The documents also mention stock split without specifying the ratio.

The mattress firm intends to trade on the New York Stock Exchange under the ticker ‘MFRM’.

Write to Maria Armental at [email protected]

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