Deal comes after the embattled global retailer sold shares in KAP Industrial earlier this week
Steinhoff International, which raised R4.8bn by selling shares in KAP Industrial earlier in the week, said on Thursday it would also sell most or all of its interests in vehicle dealership company Unitrans.
The embattled retailer, which is in a precarious financial position after discovering “accounting irregularities”, said it had reached an in-principle agreement to sell 74.9% of Unitrans and 100% of the loan claims against Unitrans held by Steinhoff Africa. The value of the potential deal was not disclosed.
“Following a strategic review of its operations, Steinhoff resolved to dispose some of its noncore assets, including its shareholding in KAP Industrial Holdings and Unitrans, which has very different business characteristics and growth drivers from the rest of Steinhoff’s retail portfolio,” Steinhoff said.
It would look to sell its remaining 25.1% interest in Unitrans at a later date, as part of a broad-based BEE transaction, Steinhoff said. Unitrans operates 99 dealerships in SA as well as the Hertz car rental franchise in SA, Botswana, Namibia and Zimbabwe. The business also provides short-term insurance products.Definitive legal agreements on the terms and conditions of the deal need to be negotiated, Steinhoff said. It will sell the business to CFAO Holdings SA, a subsidiary of Toyota Tsusho Corporation.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Steinhoff reaches agreement to sell shares in car dealer network UnitransSteinhoff announced on Thursday that it had reached an in-principle agreement to sell 74.9% of Steinhoff Africa’s shares in automotive dealer network Unitrans.
Read more »
Steinhoff raises R4.8bn from KAP share saleEmbattled retailer will pump some of the proceeds into its debt restructuring process
Read more »
Steinhoff raises R4.8bn in share saleSteinhoff managed to raise R4.8bn by placing over 600 million of its shares in KAP Industrial Holdings on offer.
Read more »
Progressive Professionals Forum wants SIU probe into SteinhoffAn investigative report found that a small group of former executives inflated the profit and asset values of the company for years.
Read more »
Ferial Haffajee: PwC’s Steinhoff report is a whitewash laced with white privilegeSteinhoff’s caretaker board and management have not risen to the challenge of good corporate citizenship, says Ferial Haffajee.
Read more »
Hawks say they are waiting 'anxiously' for access to PwC report into SteinhoffThe 3000-page forensic probe into accounting fraud was given to Steinhoff leadership by PwC earlier in the month.
Read more »
Hawks’ Steinhoff probe angers MPs🔒 An audit by PwC revealed that Steinhoff made irregular transactions over several years had inflated the company’s profits and assets by more than €6.5-billion (R100-billion).
Read more »
Clipped Hawks falter over SteinhoffRECAP: In September last year, a self-assured Markus Jooste, flanked by four legal representatives, told MPs he knew nothing of “accounting irregularities” at Steinhoff.
Read more »
Auditing board awaits Steinhoff’s restated financial statementsThe Independent Regulatory Board for Auditors (Irba) says that, as part of its probe into the role played by Deloitte SA in the auditing of Steinhoff’s financial statements, it will rely on the publication of the furniture retailer’s restated financials.
Read more »