April 12, 2018 / 5:52 AM / 3 months ago

Steinhoff sells 6 percent of African unit to help cut debt

JOHANNESBURG (Reuters) - Troubled South African retailer Steinhoff (SNHJ.J), raised 3.75 billion rand ($314 million) from the sale of a 6 percent stake in Steinhoff Africa Retail (STAR) (SRRJ.J), another step in its efforts to shore up its finances and pay down debt.

Steinhoff (SNHG.DE), which owned 76.81 percent of STAR - its domestic operation - is fighting for survival.

It discovered accounting irregularities in December that knocked around 90 percent off its share price and led to the departure of its chief executive and chairman.

The multinational, which has more than 40 retail brands including Conforama in France, Poundland in the UK and Mattress Firm in the U.S, said it sold 200 million shares in STAR via an accelerated bookbuild, reducing its holding to 71.01 percent.

The sale was at an offer price of 18.75 rand per share, representing a discount of 2.6 percent to STAR’s Wednesday close.

Reporting by Nqobile Dludla; editing by John Stonestreet

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