South African retail company Steinhoff International is aiming to secure 4.8 billion rands ($332 million) through a share placement.
The company intends to raise the proceeds through the divestment of its 26 percent stake in South African chemical to logistics company KAP Industrial.
Steinhoff noted that it would place up to 694 million shares in KAP Industrial via an accelerated bookbuilding, which will open with immediate effect and is expected to close as soon as possible, to raise cash to repay debt and shore up its finances.
The company added that the placement would be offered to institutional investors only and will result in the company no longer holding an interest in KAP. Standard Bank and Investec are joint arrangers of the accelerated bookbuild.