Steinhoff Africa Retail (Star) said on
Friday it was refinancing some R16bn in loans from its embattled parent
Steinhoff International, a week after Steinhoff said it would seek
better terms from its subsidiary.
Firstrand’s Rand Merchant Bank (RMB) has been appointed to handle the refinancing of the shareholder loans and ring-fence funding facilities, Star said in a statement.
“The new facilities will be used to repay Steinhoff shareholder loan funding and provide the Star group with stand-alone financing facilities,” the company said.
RMB was in the process of engaging certain banks and financial institutions with regards to the new facilities.
Steinhoff continued its plunge on Friday after announcing the resignation late on Thursday of chairman and largest shareholder, billionaire Christo Wiese.
Wiese was stepping down from the supervisory board following the accounting scandal that has engulfed the retail giant.
The company also informed the market on Friday morning various banks providing funding to the entity had enforced their security rights, selling some 98.4m shares.
Steinhoff had said last week it would seek better finance terms from Star, which listed on the JSE in September.
Star owes about R11bn in long-term and R4.8bn in short-term loans to Steinhoff.
Firstrand’s Rand Merchant Bank (RMB) has been appointed to handle the refinancing of the shareholder loans and ring-fence funding facilities, Star said in a statement.
“The new facilities will be used to repay Steinhoff shareholder loan funding and provide the Star group with stand-alone financing facilities,” the company said.
RMB was in the process of engaging certain banks and financial institutions with regards to the new facilities.
Steinhoff continued its plunge on Friday after announcing the resignation late on Thursday of chairman and largest shareholder, billionaire Christo Wiese.
Wiese was stepping down from the supervisory board following the accounting scandal that has engulfed the retail giant.
The company also informed the market on Friday morning various banks providing funding to the entity had enforced their security rights, selling some 98.4m shares.
Steinhoff had said last week it would seek better finance terms from Star, which listed on the JSE in September.
Star owes about R11bn in long-term and R4.8bn in short-term loans to Steinhoff.
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