The Steinhoff share price continued its downward spiral on Tuesday, wiping tens of billions of rand off the company’s market capitalisation in heavy trade.By the close, it was down 9.15% to R45.65, with short sellers believed to be hitting the share ahead of the release of results on Wednesday. According to a Reuters report, a staggering 40% of Steinhoff’s JSE-listed shares are out on loan. This is double the August level and the second-highest loan rate of any JSE-listed company. On Monday, the shares tumbled 10% after Steinhoff announced that its full-year results would not be audited. The announcement, which evidently spooked the market, said Steinhoff’s supervisory board and its auditors had not yet finalised their review of "certain matters and circumstances" that were raised by the criminal and tax investigation in Germany. The investigation, which relates to allegations of improper arm’s-length valuations at one of the group’s German subsidiaries, has been hanging over the co...

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