Steinhoff sells off some PSG shares

Consumer conglomerate Steinhoff International – whose market value has been smashed by allegations of accounting irregularities — has sold 20.6-million shares in Stellenbosch-based investment house PSG Group to raise R4.7bn. The sale represented 9.5% of Steinhoff’s original 25.5% stake in PSG, which holds valuable investments in Capitec Bank, private education venture Curro Holdings and Pioneer Foods. Market talk is that Steinhoff — which is desperately reinforcing its balance sheet — would look to offload the remaining stake in PSG in the near term. The PSG shareholding is a highly liquid position and an effective way for Steinhoff to raise capital quickly. In a statement, Steinhoff said proceeds from the share sale would be used in support of operational activities. Reports have also suggested Steinhoff could mull the sale of all or part of its shareholding in JSE-listed industrial conglomerate KAP. At this point, the identity of the buyer (or buyers) of part of Steinhoff’s PSG sh...

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