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Steinhoff sells part of stake in South Africa's KAP to cut debt

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Staff Writer | March 13, 2018
Crisis-hit South African retailer Steinhoff will sell part of its $800 million stake in KAP Industrial to shore up its finances and pay down debt.
Africa   Steinhoff said it would sell 450 million shares
Steinhoff, which has more than 40 retail brands that include Conforama, Poundland and Mattress Firm, faced a fight for survival after admitting "accounting irregularities" in December, wiping about 85 percent off its market value and throwing it into a liquidity crisis.

The company has said it plans to raise around 2 billion euros ($2.47 billion) from the sale of non-core assets and the proceeds of debt repayments from its African unit Steinhoff Africa Retail to plug a hole in its balance sheet.

Steinhoff has already raised around $729 million from the sale of stakes in South African investment firm PSG Group, French online retailer, as well a property in Austria.

The company said it would sell 450 million shares, or a 17 percent stake, in KAP via an accelerated bookbuild - reducing its holding to 26 percent - to raise cash for repaying debt.