Chief executive Anthony Heraghty toldThe Age andThe Sydney Morning Herald the funds from the raise would not be used to make any drastic changes at the company,saying instead it would be employed to simplify Super Retail's business structure and invest further in its existing brands.
"We want to be in a position of confidence to invest strongly in stuff that we know that works,"he said."There are no radical departures from the strategy,it's about having the confidence to execute on what's working."
However,Mr Heraghty noted the funds would also give the $1.5 billion retailer greater scope to strategically expand its business. These opportunities would likely manifest as distribution deals rather than acquisitions,he said,noting the latter tended to"generate complexity".
"For instance,if there was a global sports brand that was looking for a route to market in Australia and was after distribution...we'd look at[it],"he said."That's something that could happen."
In the short term,Super Retail will use the capital raised to invest further in its digital capabilities,including better supply chains,increased analytics,and further simplification of the company's business model.
Shares will be offered one-for-seven at a price of $7.19,representing an 8 per cent discount to Friday's $7.81 closing price. Major shareholder and Supercheap Auto founder Reg Rowe will participate in the capital raising and will take up his full 30 per cent entitlement,which amounts to around $60 million.
"Combined with other initiatives announced,it will allow the group to continue executing its growth agenda,invest in its market-leading brands,further differentiate its proposition and provide additional flexibility in an uncertain environment,"Mr Rowe said.