More probes into embattled Steinhoff as shares continue partial recovery
Steinhoff’s share price gained another 26% to close at R11.76 on Tuesday even as more investigations into alleged fraud at the embattled global retailer were launched. The Department of Trade and Industry and the Companies and Intellectual Property Commission said they would investigate whether Steinhoff had breached the Companies Act "and regulations". The retailer’s shares plummeted to R6 last week after CEO Markus Jooste resigned when Steinhoff delayed the release of its financial statements due to "accounting irregularities". On Monday, the stock rose 56%, albeit off a low base. Shaun Murison, senior market analyst at IG, said this "might provide some evidence of a market that is reassured by the [newly appointed board] subcommittee’s ability to restore better corporate governance". "However the real test will be about the team’s ability to secure support and confidence from lenders to ensure help in maintaining operational liquidity." Vestact said in a note to clients that the ...
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