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South African exchange investigates Steinhoff disclosures

Investigation adds to pressure on Dealz parent following accounting scandal

Shares in Dealz parent Steinhoff rose by as much as 40 per cent on Monday, regaining some ground after it called on its lenders to help.

Mon Dec 11 2017 - 18:47

South African stock exchange operator JSE launched an investigation on Monday into whether Dealz parent Steinhoff broke disclosure rules, heaping pressure on the retailer as it tries to contain an accounting scandal.

Shares in Steinhoff fell by 80 per cent last week after the international retail group, whose brands include Dealz/Poundland and Mattress Firm, disclosed "accounting irregularities".

The JSE said it was investigating whether there had been any breaches of its listing requirements, including “any breaches in relation to previous financial disclosures made to the public by Steinhoff International”.

Steinhoff has a secondary listing on the bourse, which is also reviewing trading in its shares ahead of last week’s announcements.

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Steinhoff’s shares rose by as much as 40 per cent on Monday, regaining some ground after it called on its lenders to help. It has also hired US investment bank Moelis & Co and asked management consultancy AlixPartners “to assist on liquidity management and operational measures”.

Steinhoff has its main listing in Frankfurt where its shares rose by more than 13 per cent. – Reuters

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