Steinhoff battling in an ocean of debt
First to be sold were PSG and KAP, with Star next in line — though this could produce a surprise reverse-twist
Steinhoff, the house of cards built by disgraced former CEO Markus Jooste, is being dismantled piece by piece. It’s been a case of easy pickings of its listed assets: first came PSG, now being followed by KAP, Steinhoff’s SA industrial arm. With KAP, Steinhoff’s first move has been reduction of its stake from 42.7% to 25.92% through a share placement grossing R3.67bn. Prior to the placement, KAP had already moved to distance itself from Steinhoff by terminating a mutual corporate services agreement and exiting rental space in Steinhoff’s Stellenbosch head office. Daniel Isaacs, an equity analyst at 36One Asset Management, believes Steinhoff’s remaining stake in KAP will be sold. Sale of the entire stake in one go could have forced Steinhoff to accept a bigger discount to KAP’s trading price, Isaacs says. Steinhoff’s sale was at a small 4.1% to KAP’s closing price on March 12, the day the private placing was announced. The placing, notes Steinhoff in a release, was "multiple times ov...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.