STEINHOFF CUTS STAKE IN KAP TO 26%

JOHANNESBURG-  Steinhoff has announced on Tuesday that they will be selling part of its $700 million stake in KAP industrial, this move is seen as efforts of the crisis hit retailer to shrink a liquidity gap.

Steinhoff retailer is fighting for survival, it has more than 40 retail brands such as,¬†Conforama, Poundland and Mattress Firm, after admitting “accounting regularities”, which wiped 85% its market value and placing it into liquidity crisis.

The company added that they will be selling 450 million shares, 17% of their stake in KAP through a accelerated book-build, a move to reduce their stake to 26% in efforts to raise cash to repay their debt.

In a statement Steinhoff said, “Steinhoff continues to view KAP as a compelling investment case, especially in view of recent events in South Africa and the prospect of improving economic conditions.”

KAP is a industrial group involved in selling a variety of materials from chemicals, auto components and mattresses.

Steinhoff has already raised R7.1 billion to fix their financial books.

Photo Credit- EWN

 

 

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