Steinhoff raises R4.8bn from KAP share sale

Steinhoff sens statement:

Steinhoff International Holdings N.V. (the “Company” and with its subsidiaries, the “Group”) refers shareholders to its announcement released on SENS on 26 March 2019 regarding the launch of an accelerated bookbuild offering to place up to 694,206,661 ordinary shares in KAP Industrial Holdings Limited (“KAP”) (“the Placing Shares”) (the “Placing”).

Steinhoff has successfully placed the Placing Shares at a price of R6.85 per Placing Share (“Placing Price”) raising total gross proceeds of R4.8bn (c. €293m). The book of demand was oversubscribed. The Placing Price represents a discount of c. 9.4% to the KAP closing price on 26 March 2019.

Accordingly, the Placing Shares, constituting approximately 26% of KAP’s issued share capital, will be allocated in terms of the Placing, resulting in the Company no longer holding a direct interest in KAP.

Settlement of the Placing is expected to occur on Monday, 01 April 2019.

Shareholders and other investors in the Company are advised to exercise caution when dealing in the securities of the Group.


Steinhoff raises $332m by selling remaining KAP stake

By Janice Kew

(Bloomberg) – Steinhoff International Holdings NV raised R4.8bn ($332m) by selling its remaining shares in KAP Industrial Holdings Ltd. as the embattled retailer looks to shore up its balance sheet.

The owner of Conforama in France and Mattress Firm in the US sold its 26% stake in the South African industrial company at a 9.4% discount to Tuesday’s closing price, Steinhoff said in a statement on Wednesday. The company said the proceeds will help ensure it has enough cash to fund other units as it seeks to restructure debt.

The move follows similar disposals of stock in Pepkor Holdings Ltd., Steinhoff’s African retail operations, and investment holdings company PSG Group Ltd. Steinhoff sold almost R3.7bn worth of KAP shares a year ago.

Steinhoff’s Chairwoman Heather Sonn last week said the retailer remains in a “precarious position” after revelations of accounting irregularities in December 2017 erased almost 95% of its market value. It’s also seeking to sell properties in Europe worth about €400m ($452m), people familiar with the matter said earlier this month.

KAP and Pepkor have been seeking to distance themselves from the troubled retailer. In August, KAP said it was finally seeing an end to the damage from its association with Steinhoff. Pepkor changed its name from Steinhoff Africa Retail Ltd. last year.

Standard Bank of South Africa Ltd. and Investec Bank Ltd. managed the sale, with the settlement expected to close April 1. KAP gained 0.8% on Tuesday to close at R7.56 in Johannesburg on Tuesday.