May 26, 2021
Latham & Watkins advised the committee
of lenders under the €7.3 billion secured facilities to Steinhoff Europe and
the cornerstone investors on the debut of ordinary shares, listing, and
admission to trading on the regulated (main) market operated by the Warsaw
Stock Exchange N.V. of Steinhoff Europe’s subsidiary, the Pepco Group. Pepco owns the Poundland chain in the UK, as
well as the PEPCO and Dealz brands in Europe and operates over 3,200 stores
across 16 countries.
The listing is the largest IPO in Poland
this year. Based on the offer price of PLN 40 the implied initial market
capitalisation of the Pepco Group was PLN 23 billion (€5.1 billion). Including
the over-allotment option, approximately 92 million shares were sold in the
offer, including a 2.5 million share allocation to retail investors. A further
23 million existing shares were sold to the lenders to Steinhoff Europe under
the terms of their existing debt facilities.
Latham & Watkins has been representing
the committee of lenders since 2018 when Steinhoff Europe’s debt facilities
were consolidated and refinanced, and this transaction represents a significant
milestone for the group and the lenders.
The Latham team advising on the strategic
cross border deal, combining market leading capital markets and finance advice,
was led by London partners Simon Baskerville and James Inness, with associates
Matthew Hope and Nick Fisher.