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.