Steinhoff [JSE:SNH] announced on Tuesday that it would be selling its remaining interest in its subsidairy furniture retailer POCO.
In April Steinhoff had already agreed to sell half of the German furniture chain to former business partner Andreas Seifert.
In an update to shareholders on Tuesday, the embattled retailer said its subsidiary LiVest GmbH, which holds the group’s shares in POCO, had entered into a sale agreement with the Seifert Entities by which the Seifert will acquire LiVest’s shares in POCO - certain related properties - for a total consideration of €270.68m (about R4.6bn at current exchange rates).
“In addition, the POCO business will retain debt of approximately €140 million, with no recourse to the group,” said Steinhoff. “The closing of the POCO sale is subject to typical conditions precedent including German and Austrian competition and merger control provisions."
Steinhoff said the closing of the POCO sale would bring the German litigation proceedings with the Seifert Entities to an end.
* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
NEXT ON FIN24X