Steinhoff sells South African auto showrooms unit to France's CFAO

28th March 2019 By: Reuters

Steinhoff has sold a majority stake in its South African auto dealerships unit, it said on Thursday, days after selling its stake in a local industrial group to shore up its finances following a devastating accounting fraud.

Steinhoff revealed details earlier this month of the €6.5-billion fraud that has shocked investors and left the retail group scrambling for working capital.

The company said it had reached an agreement to sell a 75% stake in Unitrans, which runs one of South Africa's largest auto showrooms and a network of trucks dealerships with annual sales of more than R23-billion.

Unitrans is being sold to French distribution company CFAO, part of Japanese conglomerate Toyota Tsusho Corp, Steinhoff said, without giving financial details of the deal.

Steinhoff raised R4.8-billion from the sale of its 26% stake in KAP Industrial to pay off debt and bolster its finances. It has also sold stakes in South African investment firm PSG Group, French online retailer Showroomprive.com, and a property in Austria.