Crisis-hit South African retailer Steinhoff will sell part of its $800 million stake in KAP Industrial, another step in its efforts to shore up its finances and pay down debt.
The company has said it plans to raise around 2 billion euros ($2.47 billion) from the sale of non-core assets and the proceeds of debt repayments from its African unit Steinhoff Africa Retail to plug a hole in its balance sheet.
The company said it would sell 450 million shares, or a 17 percent stake, in KAP via an accelerated bookbuild to raise cash for repaying debt. The KAP deal is expected to bring in another $300 million.
Steinhoff plans to use the proceeds to help fund the early repayment of its $1.3 billion South African bond, which would release money for Mattress Firm in the United States.