Steinhoff faces core question from markets
The conglomerate weighs selling local or global assets
The market will be watching developments at Steinhoff as the embattled retail holding com-pany decides which noncore assets will be put up for sale. Steinhoff is considering a liquidity boost by selling assets worth at least €1bn. The group is facing various investigations into the "accounting irregularities" that were revealed last week, leading to significant loss of value for the JSE-listed group. 36One Asset Management analyst Wessel Badenhorst said that while it was difficult to judge what were core and noncore assets, the group had the option to sell off its international interests. In that case, the Australian and US businesses would be characterised as noncore. If it chose to focus on trimming its local portfolio, it could unbundle Steinhoff Africa Retail (Star) or even create a different investment vehicle to operate in the future. The property portfolio, Star, PSG and KAP shares and loans should immediately be disposed of to create liquidity, said analyst at Gryphon asset ...
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