Steinhoff says it is considering all options to cut debt
South African retailer faced fight for survival after admitting ‘accounting irregularities’
Shares in Steinhoff Africa Retail weakened 3.5% in early trade on Tuesday before trimming losses to trade 2.97% down at 21.25 rand
Crisis-hit South African retailer Steinhoff said on Tuesday it was considering “all of its options” in order to support its liquidity after a report that the retailer could sell a stake in its African unit.
Steinhoff, which has more than 40 retail brands that include Conforama, Poundland/Dealz and Mattress Firm, faced a fight for survival after admitting “accounting irregularities” in December, wiping some 85 per cent off its market value and throwing it into a liquidity crisis.
The sale of shares in Steinhoff Africa Retail (STAR) , in which Steinhoff owns a 77 per cent stake, would come through an accelerated bookbuild, Bloomberg reported, quoting unnamed sources familiar with the matter.
Shares in STAR weakened 3.5 per cent in early trade before trimming losses to trade 2.97 per cent down at 21.25 rand. Steinhoff’s shares were down 1.8 per cent to 3.82 rand.
The company has said it plans to raise around €2 billion from the sale of non-core assets and the proceeds of debt repayments from STAR to plug a hole in its balance sheet. – Reuters