Steinhoff looking to sell its shares in PSG and KAP: report
Steinhoff is considering selling stakes worth a combined R19 billion ($1.4 billion) in local companies PSG Group and KAP Industrial to help plug a liquidity gap at the retailer, according to a report by Reuters.
The company had previously said it planned to raise around R27 billion ($2 billion) from the sale of non-core assets and the proceeds of debt repayments from its African unit Steinhoff Africa Retail, to fill a hole in its balance sheet.
Steinhoff owns about 25% of PSG, a R60 billion ($4.40 billion) investment holding company, and 39% of diversified industrial group KAP Industrial, which is worth around R6.1 billion at current market prices.
“It cannot get any more non-core than their stake in PSG,” a source told Reuters. “It is on the table and so is the stake in KAP.”
Steinhoff International rose more than 50% on the Monday after the group announced a number of measures it planned to implement to return the retail giant into stability.
On Tuesday it was up a further 30% at 11:40 AM (SAST) and was up at R12.25 a share.
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