|Bid||0.0680 x 137500|
|Ask||0.0692 x 393700|
|Day's range||0.0671 - 0.0710|
|52-week range||0.0150 - 0.1519|
|Beta (3Y monthly)||-0.24|
|PE ratio (TTM)||N/A|
|Earnings date||16 Apr 2018 - 20 Apr 2018|
|Forward dividend & yield||N/A (N/A)|
|1y target est||0.20|
(Bloomberg) -- South Africa’s financial regulator fined Steinhoff International Holdings NV a record 53 million rand ($3.6 million) for failing to properly disclose accounting problems and is probing at least 10 individuals in connection with the late-2017 scandal.The Financial Sector Conduct Authority reduced the penalty from an initial 1.5 billion rand in light of the retailer’s precarious financial position, according to Brandon Topham, divisional executive for investigations and enforcement. The FSCA is concerned that putting too much pressure on Steinhoff’s balance sheet could result in job losses, he said.“This is a record fine, but we did have to reduce it quite significantly,” Topham said in an interview. “We had to consider shareholders and employees who have already taken a lot of pain.”The fine is Steinhoff’s first sanction by regulators or legal authorities for improper disclosure since the emergence of an accounting scandal in late 2017, though numerous investigations are taking place around the world. The owner of Poundland in the U.K. and part of Mattress Firm in the U.S. lost 98% of its market value after the crisis erupted and has been battling for survival ever since.The FSCA announced the fine on Thursday, ahead of a press briefing at its office in Pretoria. Steinhoff has previously incurred smaller penalties for the late reporting of financial statements.“We are pleased that the matter has now been brought to a conclusion and that the FSCA has recognized our full cooperation with the investigation,” Steinhoff Chief Executive Officer Louis du Preez said in a statement. “There are no further enforcement FSCA actions outstanding against the Steinhoff Group.”Jooste CaseThe regulator is also pursuing a civil case against former CEO Markus Jooste, who quit the day the scandal broke, and will support criminal prosecutors in their efforts to make a case against him and others who played a role in the wrongdoing, Topham said.The former CEO is one of a several people being probed, including the eight Steinhoff identified in March as being behind questionable transactions that brought the global retailer to the brink of collapse.Read More: Steinhoff’s Ex-CEO Among Eight Named for Questionable Deals“There are at least 10 people that may have reasonably had knowledge -- and the majority are outside the country,” Topham told reporters, adding that leniency would be considered for those willing to exchange information.Steinhoff has managed to stay afloat and last month secured a crucial deal with creditors, enabling the company to skip principal and interest payments on about 9 billion euros ($9.9 billion) in debt until December 2021. However, several outstanding legal claims endanger its ability to continue as a going concern.The FSCA is also investigating potential insider trading ahead of the 2017 share-price collapse. The probe is currently centered on allegations against an individual and should be finalized in the next two months, Topham said.Last year, Bloomberg News reported that Jooste advised friends to sell Steinhoff shares days before the stock collapsed.Read More: Steinhoff Ex-CEO Told Friends to Sell Stock Before Collapse (Updates with further FSCA comment starting in first paragraph)To contact the reporters on this story: Franz Wild in London at firstname.lastname@example.org;Janice Kew in Johannesburg at email@example.comTo contact the editors responsible for this story: Anthony Aarons at firstname.lastname@example.org, ;Heather Harris at email@example.com, John Bowker, Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Steinhoff International Holdings NV nominated Mazars LLP’s Netherlands unit as its new group auditor as the South African retailer looks to make a fresh start after it was almost destroyed by an accounting scandal.Mazars accepted an offer to replace Deloitte LLP, Steinhoff’s board said at its annual general meeting in an Amsterdam hotel on Friday. Shareholders will able to vote on the proposal at a later date.Deloitte’s refusal to sign off on Steinhoff’s financials for the year through September 2017 ultimately brought to light a web of inflated asset values and dubious third-party transactions that caused the share price to collapse. However, it later emerged that the firm had signed off on audits from previous years that were similarly flawed, and Deloitte is being investigated by accounting regulators.Shareholders present at the meeting were quick to question how Steinhoff had come to select Mazars and whether the firm is up to the task. While Deloitte has reviewed and restated earnings for 2017 and 2018 after months of work, little more than 50% of investors voted to approve the results, with many abstaining.“We hadn’t expected this surprising announcement of the selection of Mazars as the statutory auditors for the coming year,” Armand Kersten, head of European relations at Vereniging van Effectenbezitters, the Dutch firm leading a class-action lawsuit against Steinhoff in the Netherlands, said at the meeting. “I would really like to hear who the other firm is that was also in the running and why the particular choice has been made for this audit firm.” He also said that when shareholders vote on the appointment of the auditor, he believes they must be given at least two choices.The Dutch Mazars audit team will work closely with colleagues in the U.K., South Africa and France and where possible, in other countries where Steinhoff operates, Steinhoff’s head of the audit and risk committee, Steve Booysen, said. Through a temporary agreement, until the shareholders can vote, Mazars has already started working on the accounts.“The management board and supervisory board are not only very pleased with the nomination, but are also grateful to Mazars for being willing to accept engagement as our auditor under our present circumstances,” Booysen said.VEB also urged Steinhoff’s management, led by Chief Executive Officer Louis du Preez and Chairwoman Heather Sonn, to release the full version of a forensic report by PwC into the financial transactions behind the crisis.The executives reiterated that the results of the probe could not be released due to ongoing legal action against the company. Equally, publication may jeopardize Steinhoff’s claims against former managers, company officials said, including ex-CEO Markus Jooste.(Updates with investor group comments from fifth paragraph.)To contact the reporter on this story: Janice Kew in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Eric Pfanner at email@example.com, James AmottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Steinhoff International Holdings NV’s new board is seeking more power as shareholders vote at its annual general meeting in Amsterdam Friday.Shareholders will be deciding on the implementation of governance changes, including whether to allow the supervisory board the right to suspend managing directors at any time. The meeting starts at 1 p.m. local time.Key InsightsSteinhoff’s recent agreement with creditors, which allows it to avoid paying principal and interest on about 9 billion euros ($10 billion) of debt until December 2021, was a vital step for bringing stability to the retailer. But those holding the shares have little left as the stock trades near all-time lows.Steinhoff is asking shareholders to give more power to the boards, which both have several new faces on them. The argument is that these changes are needed to ensure the company has the agility to navigate the still tricky road ahead. They would also give managers the authority to implement mergers and demergers, without seeking shareholder approval.Some analysts have questioned whether Steinhoff is heading to a systematic liquidation where all assets will be sold off over time, rather than a debt-for-equity swap when the restructured loans mature. At any rate, shareholders at Friday’s meeting are likely to want to know what steps are being taken to settle litigation against the company.Market ReactionThe stock, which has slumped 98% since the accounting scandal erupted, traded 6.1% higher at 8 euro cents at 9:48 a.m. in Frankfurt.Get MoreSteinhoff’s Legal Woes Leave Very Little for Those Holding StockSteinhoff’s Effort to Recoup Salaries Faces Lengthy Legal BattleSteinhoff to Give Retailers Long Leash Amid Survival BattleSteinhoff Is Said to Consider IPO of Pepco, Poundland OwnerTo contact the reporter on this story: Janice Kew in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Eric Pfanner at email@example.com, Thomas MulierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Scandal-hit Steinhoff said on Wednesday it had refinanced some 9 billion euros (£8 billion) of debt in its overseas operations which include brands such as Poundland in Britain and France's Conforama, after pushing the deadline date back repeatedly. "Implementation of the restructuring is a major milestone on our recovery journey, bringing with it the stability that will allow us to turn the page and concentrate fully on maximising value from our operating companies," Group Chief Executive Louis du Preez said in a statement. Du Preez on Tuesday delivered a stark assessment of Steinhoff's options at the South African company's first public investor presentation since a $7 billion (£6 billion) accounting fraud scandal broke, saying its only hope for survival is to sell off assets to become a retail-focused holding company.
Scandal-hit South African retailer Steinhoff said on Tuesday its only hope for survival is to sell off assets to become a retail-focused investment holding firm, as it fights to contain the fallout of a $7 billion accounting fraud. In its first presentation to investors since then, the retailer's chief executive Louis du Preez said its "only way to survive" was to slim down into a pure investment holding company focused on retail. To achieve that Steinhoff is looking to sell off its non-retail assets and cut jobs at its French retail chain Conforma, its management said during the presentation.
South African retailer Steinhoff reported a 356 million euros ($401 million) half-year loss from continuing operations on Friday, as the damage from a massive accounting scandal drags on. Steinhoff first flagged holes in its accounts in December 2017 -- the warning shot for an accounting fraud since put at over $7 billion -- shocking investors that had backed its transformation from a small South African outfit to a discount furniture retailer spanning four continents. The owner of Mattress Firm Inc in the United States, Fantastic chains in Australia and Conforama in France said the loss from continuing operations came in at 356 million euros in the six-months ended March compared with a loss of 392 million euros a year earlier.
Steinhoff International has started legal proceedings against former Chief Executive Markus Jooste and ex-finance chief Ben La Grange to recover certain salary and bonus payments they got prior to 2017. The South African retailer's CEO Louis du Preez told lawmakers in March that Jooste, la Grange, along with six other people, were involved in inflating Steinhoff profits and asset values over several years, forcing the firm to restate years of financials. Steinhoff first flagged holes in its accounts in December 2017 -- leading to the exposure of a more than $7 billion (£6 billion)accounting fraud -- shocking investors who had backed its rise from a small South African outfit to a discount furniture retailer straddling four continents.
Steinhoff International warned of the lingering damage from a massive accounting scandal after the South African retail group reported a 1.2 billion euro ($1.3 billion) annual loss, sending its volatile shares down 8 percent. Steinhoff first flagged holes in its accounts in December 2017 -- the warning shot for an accounting fraud since put at over $7 billion -- shocking investors that had backed its transformation from a small South African outfit to discount furniture retailer straddling four continents. While it reduced losses by 70 percent compared to the 4 billion euro figure in 2017, Steinhoff warned that the reputational damage it had suffered and advisor and professional fees would weigh on its performance this year.
* STOXX 600 down 0.2% in early deals after hitting 6-week highs a day earlier * Hopes of trade deal, dovish Fed limiting losses * UK housebuilders rise after strong Berkeley results * Saga sinks as tour operator warns on Brexit Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: firstname.lastname@example.org OPENING SNAPSHOT: SUBDUED START AHEAD OF FED (0726 GMT) European stocks are slightly lower with banks, mining and auto sectors making gains, while defensives such as consumer staples and utilities are in red. Chip stocks are rallying today pinning hopes on a potential China-U.S. trade deal.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: email@example.com WHAT'S ON OUR RADAR: SAGA, BERKELEY, STEINHOFF, ADYEN (0656 GMT) It's a lull in continental Europe, but there is some action in the UK with corporate companies continuing blame Brexit and/or political uncertainties for poor results. Saga says its tour operations business is still being hit by political uncertainties, housebuilder Berkeley Group has reported a 21% drop in pretax profit and Whitbread's like-for-like revenue per available room in the UK fell 6% in Q1.
South African retailer Steinhoff on Tuesday reported a $4 billion operating loss in the 2017 fiscal year, in a much-delayed earnings report revealing the impact of a $7.4 billion accounting fraud. Steinhoff, which is also listed in Frankfurt, delayed the results after finding holes in its accounts, shocking investors who had backed its reinvention from small South African furniture outfit into a discount furniture retailer straddling four continents. The owner of Mattress Firm Inc in the United States, the Fantastic chains in Australia and Conforama in France said operating loss came in at 3.7 billion euros ($4.14 billion) in the year ended September 2017 compared with profit of 278 million euros in the restated 2016 figures.
South African retailer Steinhoff said on Tuesday it had reduced the value of goodwill and intangible assets recorded in its accounts for the end of September 2017 by 1.8 billion euros ($2 billion) to 7.2 billion euros. Steinhoff has repeatedly delayed its 2017 and 2018 financial statements after a $7.4 billion accounting fraud that stunned investors in the multinational retailer that had been at the vanguard of the European discount furniture retail industry. Steinhoff had published interim results for the period ending March 2018 that put the value of goodwill and intangible assets at Sept. 30 at about 9 billion euros.
Troubled South African retailer Steinhoff said on Wednesday it had raised 4.8 billion rand ($332 million) from the sale of its 26 percent stake in KAP Industrial to pay off debt and shore up its finances, sending its shares higher. Steinhoff admitted "accounting irregularities" in December 2017, shocking investors who had backed its reinvention from a small South African business to a multinational retailer at the vanguard of the European discount furniture retail industry. This wiped about 85 percent off its market value and threw the company into a liquidity crisis.
Troubled South African retailer Steinhoff said on Tuesday it would place up to 694 million shares in KAP Industrial via an accelerated bookbuilding to raise cash to repay debt and shore up its finances. The placement, which will be offered to institutional investors only, will result in Steinhoff, which has a 26 percent stake in KAP, no longer holding an interest in the diversified industrial group. Steinhoff in December 2017 admitted accounting irregularities, wiping about 85 percent off its market value and throwing it into a liquidity crisis.
The suspended former chief financial officer of Steinhoff is helping authorities with investigations into $7 billion-plus (5.3 billion pounds) accounting fraud at the South African retailer, he said on Thursday. Ben la Grange is one of eight individuals named in an investigation of what an independent report by auditor PwC said was a complex scheme in which intercompany deals worth 6.4 billion euros (5.5 billion pounds) were wrongly recorded as external income to prop up profits and hide costs in underperforming subsidiaries. "I am cooperating with all government agencies," said La Grange, who was suspended last August but remains on the Steinhoff payroll as a consultant.
Former Steinhoff chairman and top shareholder Christo Wiese said on Monday he is open to negotiations over a $4 billion claim against the South African retailer, days after it revealed the scale of a devastating accounting fraud. Steinhoff said on Friday that an independent report had found it overstated profits -- which were signed off by Deloitte -- over several years in a $7.4 billion fraud involving a small group of top executives and outsiders. It did not name the individuals but said those implicated were no longer employed by Steinhoff, which first disclosed the hole in its accounts in December 2017, knocking 90 percent off the value of its shares and triggering investor lawsuits.
South African retailer Steinhoff said an independent report had found it had overstated profits over several years in a $7.4 billion (5.6 billion pounds) accounting fraud involving a small group of top executives and outsiders. Steinhoff first disclosed the hole in its accounts in December 2017, shocking investors who had backed its reinvention from a small South African outfit to a multinational retailer at the vanguard of the European discount furniture retail industry. In the country's biggest corporate scandal, an investigation carried out by PwC found the firm recorded fictitious or irregular transactions totalling 6.5 billion euros (5.6 billion pounds) over a period covering the 2009 and 2017 financial years, according to a summary of the findings posted on the Steinhoff company website.
South African retailer Steinhoff reported a slight rise in quarterly sales on Thursday and said its business was still suffering from the effects of an accounting fraud. Steinhoff was thrown a lifeline last July when its creditors agreed to delay debt claims for three years after the multinational retailer revealed a more than $12 billion hole in its accounts. "The liquidity constraints and loss of confidence resulting from the discovery of the alleged accounting irregularities continued to have an impact on operations," chief executive Louis du Preez said.