File image: IOL.
CAPE TOWN - Steinhoff Africa Retail’s (STAR) share price declined by more than 7percent on the JSE yesterday to R16.45 a share, ahead of the release of its half-year results to March, which are expected to be published later today. The shares closed at R16.90 on the JSE yesterday.

However, it was still trading higher than its lowest level of R15 a share recorded on December 20 last year, a few days after its largest shareholder Steinhoff International admitted to accounting irregularities.

Steinhoff International holds a 71.01percent stake in STAR after selling 5.8percent of the stake for R3.75billion in an accelerated book build through the sale of 200million shares in STAR to raise liquidity and settle some of its debt.

The decline of the share price comes after the back of a successful funding the group announced last week. STAR was listed separately on the JSE in September last year.

It said it had managed to raise R18bn in funding from South African institutions.

STAR said the funding would be used to repay its shareholder funding of R16bn, which was provided by Steinhoff International, and R2bn was raised in line with STAR’s growth in operations.

Resigned

However, on Friday it was reported that Braam van Huyssteen, the founder and chairperson of Tekkie Town, had resigned from his role as chairperson of the group’s property division with immediate effect.

Van Huyssteen will remain the chairperson of the speciality fashion and footwear division. His resignation means he will no longer be a member of STAR’s executive committee.

It is believed that Van Huyssteen initiated litigation against STAR chief executive Leon Lourens, believing that STAR had breached his employment contract and then failed to remedy it. He resigned with immediate effect on Thursday and will be seeking damages that could run into millions of rand against the company.

-BUSINESS REPORT