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Steinhoff sells Kika/Leiner Group to Signa Holding

18.06.2018 − 

Steinhoff International Holdings intends to sell Austrian Kika/Leiner Group to René Benko's real estate investment company Signa Holding. According to Steinhoff, Kika/Leiner reached an agreement with Signa Holding June 14 on the sale of the operating companies and the real estate holding companies. However, Signa Holding reserves the right to conduct a due diligence review of the operational Kika/Leiner companies by June 19. It was also agreed that the buyer can withdraw from the takeover agreement for the real estate holding companies of Kika/Leiner by the end of July. Should the takeover take place, Steinhoff expects the transaction to close by the end of September at the latest.

According to Kika/Leiner Managing Director Dr. Gunnar George, the contracts will be agreed and fixed within the next few days. Signa Holding will support the restructuring process of the Group initiated at the beginning of the year as a guarantor.

The decision to sell was made against the backdrop that Kika/Leiner is currently writing losses according to Steinhoff and requires the provision of comprehensive financial resources by the parent company. In addition, additional investments over several years would have been necessary for a turnaround. Moreover, efforts to conclude contracts with new credit insurance companies have been unsuccessful. At the beginning of June, the credit insurer Euler Hermes withdrew and no longer hedges against bad debts for suppliers of the Kika/Leiner Group.

Benko had already taken over Leiner real estate in Mariahilferstrasse in Vienna in January this year. He is founder and chairman of the advisory board of Signa Holding, through which he took over the KaDeWe department store in Berlin in 2012 and the Karstadt department store chain in 2014.

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