EUROPEAN LOAN
Steinhoff failed to tell investors of nearly $1bn worth of transactions
London — German-listed Steinhoff International did not tell investors about almost $1bn in transactions with a related company despite laws that some experts believe require it to do so, a Reuters examination of filings and prospectuses has found. European financial disclosure rules, including the EU prospectus directive, say publicly traded companies must disclose all transactions that are material in the prospectuses they present before a debt or equity sale. The law says a material transaction is one that is big enough to influence investors’ view of the firm’s financial health. However, the law does not define the details of a material transaction. One lawyer and two accounting academics told Reuters the transaction was large enough to be material. The EU rules also require disclosure of all transactions with related parties. Those three experts said this would apply to Steinhoff because the transactions involved a company called GT Branding Holding, in which it holds a minority...
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