Steinhoff shares jump on PwC report
The report shows that about €6.5bn worth of fictitious transactions between 2009 and 2017 inflated the group’s profits and asset value
Steinhoff International’s shares rose as much as 13.6% to R2.09 in early trade on Monday after the overview of PwC’s forensic investigation into the retailer’s past results was released.
The report, released late on Friday, revealed that an estimated €6.5bn worth of fictitious transactions between 2009 and 2017 had inflated the group’s profits and asset value.
But the amount was significantly below the €12.4bn that had been tagged by management when it released the March 2018 interim results in June 2018.
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Meanwhile, shares in Pepkor Holdings rose as much as 2% in early trade to R19.25.
Pepkor said in a statement that the overview of the PwC report “confirms that [neither] Pepkor Holdings, nor any of the other SA operating entities, were identified as having received such fictitious or irregular contributions from Steinhoff or any related party”.
Pepkor CEO Leon Lourens said the findings “confirm what we have always known”.
Pepkor’s financial results for the 2017 and 2018 financial years were unaffected, he said.
“This again illustrates that the appropriate financial and corporate governance structures are in place within Pepkor,” Lourens said.