Steinhoff International closed 13.67% lower at €0.52 in Frankfurt on Monday at 8pm after the European Central Bank’s (ECB’s) latest list of bonds it owns showed it had entirely divested from the furniture retailer. The rand was trading at R14.82 to the euro at 6.45am on Tuesday morning, indicating Steinhoff is likely to fall about 11% to around R7.70 when the JSE opens from the R8.68 it closed at on Monday. After plunging all the way down to R3.75 on December 21 from the R57.50 it was trading at before it indefinitely delayed releasing its financial results on December 4, Steinhoff managed to rebound to R9.75 on Friday. The ECB does not disclose the price at which it buys or sells its investments. Reuters estimated the ECB cut losses in Steinhoff at less than half its original investment. At one point last week, Steinhoff’s bond was worth as little as 45% of the value at which it was issued last July, when the ECB bought it, Reuters reported. Moody’s has cut Steinhoff’s credit ratin...
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