Steinhoff Investment - Further Private Placement Of Perpetual Preference Shares

Steinhoff Investment - Further Private Placement Of Perpetual Preference Shares 
STEINHOFF INVESTMENT HOLDINGS LIMITED                                           
 (Incorporated in the Republic of South Africa)                                 
(Registration Number 1954/001893/06)                                           
 Share code:  SHFF & ISIN:  ZAE000068367                                        
 (Steinhoff Investments)                                                        
Further private placement of perpetual preference shares                        
PSG Capital is authorised to announce that a private placement by Steinhoff     
Investments, a wholly-owned subsidiary of Steinhoff International Holdings      
Limited (SHF), of a second tranche of variable rate, cumulative, non-redeemable,
non-participating preference shares with a par value of 0,1 cent each           
(preference shares) at a subscription price of R103,37 per share (the second    
tranche), has been successfully concluded.  Preference shares placed in the     
second tranche placement are of the same class, and will rank pari passu, to the
preference shares issued and listed by Steinhoff Investments on the JSE Limited 
(JSE) in the "Specialist Securities - Preference shares" sector on 15 June 2005.
The subscription price of R103,37 represents the par value of R0,001 and a      
premium of R103,369 (nominal premium of R99,999 plus a pro forma dividend of    
R3,37 per share).  The dividend accrual period is from 15 June 2005 to 17       
November 2005.  Steinhoff Investments anticipates declaring a preference share  
dividend in the week commencing 6 March 2006 in accordance with the terms of the
preference shares.                                                              
Irrevocable undertakings have been received to subscribe for 3 500 000          
preference shares in the amount of R361 795 000 (representing a nominal value of
R350 000 000 and in respect of a pro forma accrued dividend of R11 795 000).    
All of the preference shares have been allocated at a coupon rate of 75% of the 
prime overdraft lending rate of Absa Bank Limited from time to time.            
The preference shares represent cost-effective funding that:                    
- can be utilised for equity acquisitions;                                      
- increases permanent capital and strengthens the balance sheet;                
- does not dilute the existing ordinary shareholders" interests in the group;   
and                                                                             
- reduces the cost of capital without a negative effect on cash flow caused by  
capital repayments normally associated with debt.                               
Net proceeds of the preference share issue will be used to finance long-term    
assets of a capital nature where the investment and funding structure reflect   
similar characteristics, which may include the strategic equity investments.    
The preference shares issued in the second tranche will be listed from the      
commencement of business on Friday, 18 November 2005 on the JSE.  The directors 
of Steinhoff Investments wish to thank all investors for their support during   
the placement process.                                                          
Johannesburg                                                                    
17 November 2005                                                                
Corporate adviser and sponsor                                                   
PSG CAPITAL LIMITED                                                             
Date: 17/11/2005 04:31:06 PM Supplied by www.sharenet.co.za                     
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