After the Steinhoff International share once again stabilized at the 5-cent mark, the trading company’s share price is currently in positive territory and is hovering around EUR 0.053. Meanwhile, there is news from the Dutch-South African company, which has been suffering from the consequences of a billion-dollar scandals scandal since the end of 2017 and is currently struggling with high debts and a billion-dollar process avalanche. Finally, there were the consequences of the corona pandemic, which prevented a planned IPO of the British Pepco subsidiary. Steinhoff International wanted to use the hoped-for earnings to pay off debts – that did not materialize, the Pepco IPO was put on hold.
In the French business, the pandemic also put Steinhoff International under pressure. The daughter Conforama could not secure state support to bridge the situation. As a result, Steinhoff International has started sales negotiations with Mobilux, which are now complete. Steinhoff has now agreed through Conforama Holding to divest itself of the shares in Conforama France and certain associated brands and domain names at an unspecified nominal amount and to sell them to Mobilux. In addition, 18 properties are to be sold, Steinhoff cites a total of 70 million euros for this. Part of the deal also includes a stake in Conforama Casino Achats Sàrl.
“As part of the transaction, Conforama France will receive new funds in two tranches,” Steinhoff International said in a message on Wednesday. The sale will secure Conforama’s future, Steinhoff says – the company could not have raised the funds necessary to restructure the subsidiary and to bridge the Corona crisis.
Steinhoff’s creditors have already approved the sale, but the deal is not finally in dry cloths. Official approvals are still pending. Steinhoff International expects to be able to complete the sale of its French activities by the end of September 2020.