JOHANNESBURG - Steinhoff International said on Friday definitive transaction documents had now been entered into for the sale of the Kika/Leiner operating companies and property holding companies to SIGNA Holding.
The retailing group said the sale of the operating companies was conditional upon merger clearance being received from competition authorities in Austria, the Czech Republic and Slovakia on or before September 30.
The consideration for the property holding companies was based on an enterprise value of about €490 million which was subject to agreed balance sheet adjustments, Steinhoff added.
"The withdrawal of credit insurance cover to Kika/Leiner created significant liquidity constraints for the Kika/Leiner businesses which would have placed significant further cash demands on the wider Steinhoff group," acting Steinhoff CEO Danie van der Merwe said.
The company has struggled after admitting to accounting irregularities in December which saw former CEO Markus Jooste step down and triggered a heavy sell-off on the stock market.
- African News Agency (ANA)