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Steinhoff sells 9.5% stake in PSG Group for 4.7B rand

Steinhoff International Holdings NV, the embattled South African retailer, on Dec. 15 said that it had sold a roughly 9.5% stake in affiliate PSG Group Ltd., realizing about 4.7 billion South African rand, or 293 million, before costs.

The furniture, household goods and general merchandise retailer said the proceeds would be used in support of "operational activities." It said the sale share is expected to settle Dec. 19.

Steinhoff on Dec. 15 sold about 20.6 million shares for about 230 rand each. Its indirect interest in PSG Group, a South African investment holding company with interests in financial services and retail, among other things, falls to about 16% from 25.5% prior to the sale. PSG is listed in South Africa and Steinhoff did not identify a buyer for the shares.

Steinhoff's share price has plunged more than 80% since Dec. 6 when it disclosed it would hire an independent auditor to investigate possible accounting irregularities and that its CEO had resigned.

Also on Dec. 15, Steinhoff, which includes the U.S. business Mattress Firm that owns the Sleepy's brand, reported that its executive chairman, Christoffel Wiese, had resigned after creditors sold shares he had put up as collateral against loans, loosening his grip on the Stellenbosch-based company.

As of Dec. 14, US$1 was equivalent to 13.42 South African rand.