Star rises as it bucks trend of retailer pressure
Steinhoff Africa Retail says it has successfully repaid loans to embattled Steinhoff International
Steinhoff Africa Retail (Star) bucked a trend of pressure on retailers on Wednesday, closing 2.22% higher on news it had raised sufficient new funding to both clear its Steinhoff-related debt and to finance opportunities for growth. Star — whose retail brands include Pep, Ackermans and Tekkie Town — raised R18bn from South African financial institutions. The bulk of the finance, R16bn, was used to repay shareholder funding provided by Steinhoff International Holdings at the time of Star’s JSE listing in September 2017. Star was wholly owned by Steinhoff until the listing when 23% of the company was sold to investors. Steinhoff has sold off a further 6% stake in recent months in a bid to secure funds to repay some debt. The repayment of the Steinhoff loans has allowed Star to cancel all the related third-party guarantees. Star CEO Leon Lourens said the refinancing provided a platform from which the group could grow its business to its full potential. “We appreciate the confidence the...
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