Steinhoff to sell off stake in KAP to pay debt

Steinhoff [JSE:SNH] will sell over 600 million of its shares in KAP Industrial holdings in order to meet its various obligations, the group said in a shareholder notice issued on Tuesday night, shortly after markets closed.

The process will commence with immediate effect, and Steinhoff can close the process at any time.

• Subscribe to Fin24’s newsletter here 

The retailer said that if all the 694 206 661 shares in KAP were sold, it would no longer hold any interest in the industrial group.

In that event, members of KAP’s board who are nominated by Steinhoff intend to resign, the notice read.

Steinhoff, through an indirect wholly owned subsidiary, owns 26% of KAP.

The proceeds of the sale will go towards "meeting its various obligations", including those arising from its debt restructuring process, and to ensure its business platforms are "appropriately funded", Steinhoff said.