Steinhoff International close to clinching €490m sale of Kika-Leiner
Steinhoff International’s share price rose 2.5% to close at 8.2 euro cents in Frankfurt on Thursday, after German newspapers reported its negotiations to sell Austrian furniture chain Kika-Leiner to Signa were near conclusion.
Steinhoff’s share price closed 1.6% lower at R1.22 on the JSE on Thursday.
Steinhoff issued a Sens statement on Friday morning saying Signa was offering €490m "subject to certain agreed balance sheet adjustments".
Signa, a corporation headed by Austrian real estate magnate Rene Benko, has agreed to buy Kika-Leiner’s properties. The retail business itself has been included in the deal for "a nominal amount".
"Signa was founded 18 years ago and has become a European leader comprising both Signa Retail, in 127 locations across Europe, and Signa Real Estate," Steinhoff acting CEO Danie van der Merwe said in the statement.
"Signa has prior restructuring experience in the retail sector, with Karstadt, and as such offers the Kika-Leiner business, its suppliers, customers and employees the support required at this time."
A deadline of January 2 2019 has been set for the conclusion of the acquisition.