Global group Steinhoff International has raised around €478m from the sale of shares in its investment company PSG Group.
Steinhoff, which owns UK furniture brands Benson for Beds and Harveys as well as value retailer Poundland, announced it sold 29.5m shares in PSG Group — about 85% of its stake in the South African investment company — in an accelerated book building.
The company said the sale had been “multiple times oversubscribed” and warned ahead of the sale that it might be called off if it could not achieve an “acceptable pricing”.
The sale, which will be settled on Friday, will reduce Steinhoff’s stake in PSG from 16 to 2.5%.
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The news follows its other action of selling its 17% stake in French company Showroomprivé, raising €79m, earlier this month.
Furthermore, its UK operations have secured a credit facility of up to £180m to finance its working capital and operational requirements. This all follows the previous announcement of the group experiencing accounting irregularities steaming back over the last few years.
The group has also come under rumour that its UK Poundland business has been targeted by potential private equity firms as Steinhoff could be forced to sell the high street Retail chain.
According to The Telegraph, it is understood that Advent, Apax, Bain, Clayton Dubillier & Rice, CVC and KKR are monitoring the current situation of Poundland and could be tempted to make a move for the business if Steinhoff’s financial situation worsens.