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