Johannesburg - Investors in Steinhoff are selling off the stock after the furniture maker launches a convertible bonds that could dilute their shareholding.

Steinhoff is seeking 400 million euros ($542.58 million)in senior unsecured guaranteed convertible bonds due in January 2021.

The proceeds will generally be used on extending the company's debt maturity.

Steinhoff shares are down 2.7 percent at 45.49 rand, lagging a 0.05 percent decline by Johannesburg's All-share index. - Reuters