VALUATION
Why Steinhoff's share value is up in air
The share price of Steinhoff International declined a further 2.22% to R5.28 on Wednesday, with shares in the embattled global retailer having now lost almost a quarter of their value so far in February. This has brought Steinhoff’s market capitalisation to R22bn, less than a third of Steinhoff Africa Retail (Star), of which Steinhoff holds just over 75%. Analysts say it is impossible to gauge Steinhoff’s share value, pending further clarity on several probes into accounting irregularities and as the market awaits restated results for the 2017 and 2016 financial years. News last week that Christo Wiese had reduced his stake in Steinhoff from 21% to 6.2% appeared to spook Steinhoff investors, with reports suggesting the sale had been forced upon Wiese by his lenders. Steinhoff’s share price jumped 47.1% in January, when the company secured support from lenders, allowing it to maintain liquidity in its European businesses. Steinhoff’s share price also recovered slightly after it told ...
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