Homestyle Group

Further to an announcement made on 12 May 2005 regarding the proposed refinancing through the issue of 190,926,899 new ordinary shares at 55 pence per share, on 24 May 2005 our client Homestyle posted to Shareholders a circular containing further details of the refinancing and a notice of an Extraordinary General Meeting held on 17 June 2005 to seek the requisite approval from Shareholders.

The refinancing was made up of a number of firm placings of approximately 117mlion shares (45% of the enlarged share capital) to a subsidiary of Steinhoff International Holdings Ltd, a South African furniture group, and an open offer to shareholders of up to approximately 74mlion shares. The open offer was fully underwritten by Steinhoff.

Following completion of the refinancing, Steinhoff now holds 65.2% of the Group's enlarged share capital. Proceeds will be used to repay, in full, Homestyle's existing bank facilities, fully settle an outstanding VAT claim and fund working capital and on-going development of the Group.

Canaccord Genuity acted as sole financial advisor to Homestyle.