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Steinhoff Considers Reduction of Stake in STAR Unit

  • Crisis-hit retailer seeking to boost liquidity with disposals
  • Majority stake in spun-off STAR is worth about $4.8 billion
The headquarters of Steinhoff International Holdings NV stands in Stellenbosch, South Africa.

The headquarters of Steinhoff International Holdings NV stands in Stellenbosch, South Africa.

Photographer: Waldo Swiegers/Bloomberg
Updated on

Steinhoff International Holdings NV is considering the sale of part of a 58 billion rand ($4.8 billion) stake in its separately listed African operations as the crisis-hit retailer looks to shore up liquidity, according to two people familiar with the matter.

A disposal would follow the South African company’s sell-down of shareholdings in PSG Group Ltd. and KAP Industrial Ltd., which have raised more than $1.2 billion since an accounting scandal wiped 90 percent off Steinhoff’s share price. The owner of Conforama in France and Mattress Firm in the U.S. is in talks with lenders about how to stay in business, and has sought to raise funds from non-core operations.