Ramphastos Investments, the investment company that owns Hema, has converted the debts of the Dutch chain into shares. The worth of the deal amounts to 103 million euros.
Reassure the market
This conversion is part of a long term strategy to lower Hema's debts substantially and to invest in the company's future, as FashionUnited quoted Hema's owner. Dutch business paper FD noted from the same source that this move can be seen as a signal to the financial market, that the new owner has no other interest than to let Hema grow: because of this conversion, Ramphastos can not claim or resell the loans any more.
The loans originate from Hema's takeover by Ramphastos last year. Marcel Boekhoorn's investment fund acquired not only the assets, but also the 750 million euro debt Hema carried. In order to pay off these debts, Boekhoorn also wants to sell off the chain's bakeries. Other recent steps include selling its private label products in other stores for the first time and speeding up growth abroad by appointing master franchise partners.