The bounce in the Steinhoff share price, after last week’s release of the PwC report, didn’t last long. Bounces never do. The share price is now back to the level it was a week ago. Traders had apparently been encouraged by the report’s reference to €6.5bn of “fictitious transactions” created by former CEO Markus Jooste and his gang of seven from 2009 to 2017. This was significantly below the €12.4bn written off the March 2018 balance sheet and may have prompted some to believe there was scope for a revaluation of the balance sheet. Sadly, there appears to be little chance of this. In a SENS statement issued around the same time the pithy 10-page PwC report was released, Steinhoff indicates it doesn’t believe the March 2018 restatements (published in June 2018) are materially out of line with what has been discovered by PwC. If it turns out otherwise, “the group will inform the market as soon as it becomes aware of such material difference”. It appears the €6.5bn relates to “ficti...

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