Steinhoff sells 20.6 million PSG shares for R4.7bn

Cape Town - Steinhoff International on Friday announced it has sold 20.6 million shares in PSG - or about 9.5% of its total share capital - raising approximately R4.7bn.

The sale of the PSG [JSE:PSG] shares was not unexpected, with market commentators noting the embattled Stellenbosch-headquartered retailer needed to plug its liquidity gap. 

Steinhoff International [JSE:SNH] sold the shares at an average of R230 per share. 

The sale decreased Steinhoff’s stake in PSG from 25.5% to approximately 16.0%.

“The proceeds will be used in support of operational activities. The share sale is expected to settle on Wednesday, 19 December 2017,” said Steinhoff in an investor note. 

PSG shares were trading at R243.41 on the JSE on Friday at 17:00, a decrease of 2.6%, while shares in Steinhoff International were changing hands at R8.03, down 8% on the day. 

The share sale came a day after news broke that Steinhoff's board chairperson, interim chief and largest shareholder Christo Wiese stepped down from its supervisory board. 

READ: Christo Wiese quits board as Steinhoff scandal deepens

Earlier on Friday, meanwhile, in a note to shareholders, Steinhoff announced that "various banks" had enforced their security rights and sold about 98.4 million shares in the company.

These banks had provided funding to an entity ultimately held and controlled by former Steinhoff chair Christo Wiese.

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