File image: Steinhoff. (Picture: Henk Kruger/African News Agency/ANA).

JOHANNESBURG - Steinhoff International’s share price declined further on the JSE ahead of its meeting scheduled to take place in London on Friday. 

The share price slipped by more than 8 percent to its lowest level of R1.45 a share, down from Monday’s closing price of R1.59. 

Top of the company’s executives’ minds would be to convince the lenders that it has plans to handle its €10.4 billion (R152.65bn) debt. 

It is not the first time Steinhoff addressed its lenders, after an accounting scandal rocked it in December. The first meeting, also in London, was in January. 

The group announced recently out of that €10.4bn debt, an amount of €8.7bn is attributable to Europe, with €1.4bn to South Africa and €0.25bn to its US operations. 

Ron Klipin, Cratos Capital senior analyst, said he expected Steinhoff to sell bigger stakes in South African operations in KAP Industrial Holdings, STAR and PSG Group. 

“They could have raised more liquidity by selling off more stakes in these companies,” he said. 

-BUSINESS REPORT