March 27, 2019 / 5:55 AM / 8 months ago

South Africa's Steinhoff raises $332 mln from KAP Industrial stake sale

JOHANNESBURG, March 27 (Reuters) - Troubled South African retailer Steinhoff International Holdings NV said on Wednesday it had raised 4.8 billion rand ($332 million) from the sale of its 26 percent stake in KAP Industrial Holdings Ltd .

The company sold 694 million KAP shares at 6.85 rand per share, a 9.4 percent discount to Tuesday’s closing price. The book of demand was oversubscribed, Steinhoff said in a statement.

Steinhoff said on Tuesday it wanted to raise cash to repay debt and shore up its finances.

Steinhoff in December 2017 admitted accounting irregularities, wiping about 85 percent off its market value and throwing it into a liquidity crisis.

The company sold down its stake in KAP in March 2018 after placing 450 million shares, or a 17 percent stake, also via an accelerated bookbuild in a bid to plug a liquidity gap.

Steinhoff, whose brands include Conforama, Mattress Firm and Poundland, has already sold assets that include its Polish unit Kika/Leiner, and stakes in investment holding firm PSG and industrial firm KAP.

$1 = 14.4535 rand Reporting by Olivia Kumwenda-Mtambo; Editing by Subhranshu Sahu

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