KAP: 500 -19 (-3.66%)
Steinhoff to place up to 694 mln shares in KAP Industrial
(Corrects headline and first paragraph to 694 million shares
not 6.94 million shares)
JOHANNESBURG, March 26 (Reuters) - Troubled South African
retailer Steinhoff said on Tuesday it would
place up to 694 million shares in KAP Industrial via an
accelerated bookbuilding to raise cash to repay debt and shore
up its finances.
The placement, which will be offered to institutional
investors only, will result in Steinhoff, which has a 26 percent
stake in KAP, no longer holding an interest in the diversified
Steinhoff in December 2017 admitted accounting
irregularities, wiping about 85 percent off its market value and
throwing it into a liquidity crisis.
"Steinhoff intends applying the proceeds from the sale of
the placing shares to meeting its various obligations, including
(but not limited to) those arising from its announced debt
restructuring process, and to ensuring its business platforms
are appropriately funded," the firm said in a statement.
The company sold down its stake in KAP in March 2018 after
placing 450 million shares, or a 17 percent stake, also via an
accelerated bookbuild in a bid to plug a liquidity gap.
The firm said the book will open with immediate effect and
is expected to close as soon as possible.
Standard Bank and Investec are joint arrangers of the
Steinhoff, which has more than 40 brands that include
Conforama, Mattress Firm and Poundland, has already sold assets
that include its Polish unit Kika/Leiner, as well as a stakes in
investment holding firm PSG and industrial firm KAP.
(Reporting by Tanisha Heiberg; editing by David Evans)
First Published: 2019-03-26 17:55:21
Updated 2019-03-26 19:43:24
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