EUROPEAN LOAN
Steinhoff disputes disclosure claim
The allegations relate to a $810m loan Steinhoff made to Swiss-based company GT Brand Holding in 2015
Steinhoff International has been forced to defend itself against damaging European media reports for the third time in as many months. On Wednesday, the share price slumped more than 4% to close at R59.40 after Reuters reported that — apparently contrary to European disclosure rules — it had not disclosed details of a substantial transaction with a related company. The allegations relate to a $810m loan Steinhoff made to Swiss-based company GT Brand Holding in 2015, shortly after it acquired a 45% stake in the company. Reuters quoted a European-based professor of international banking law and finance who said the loan was potentially market-sensitive information and should have been flagged. However, a second academic told Reuters that the relevant accounting rules were not clear-cut. "The rules don’t say exactly what size transactions need to be disclosed, so there is some judgment involved." The law describes a material transaction as one big enough to influence investors’ view of...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.