Steinhoff is fighting for survival. Its only real hope lies in raising billions of euros through asset sales to shore up its balance sheet and fund working capital. This casts a shadow on Steinhoff‘s biggest listed asset, the R74bn annual revenue Steinhoff Africa Retail (Star), in which it has a 78.3% stake worth around €4bn (R60bn). "Some action will have to come with Star," says Evan Walker of 36One Asset Management. "Star must exit the Steinhoff camp at some point." Steinhoff has already cut its stake in PSG from 16% to 2.5%, raising €480m (R7bn) in the process. Also likely to go is Steinhoff’s 43% stake in its SA industrial and logistics business KAP, worth about €690m (R10bn). But combined proceeds from Steinhoff’s sale of PSG shares and a potential sale of its KAP stake would amount to only €1.17bn. It is chicken feed against the €2.7bn Steinhoff needs merely to refinance its three convertible euro bonds, on which it has technically defaulted.The bonds are a small part of Stei...

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