Steinhoff shares hit by pressure
The Steinhoff International share price dipped below R60 briefly on Friday in the wake of continued pressure on sentiment as a result of European-based legal action initiated by a former joint venture partner.
The Steinhoff International share price dipped below R60 briefly on Friday in the wake of continued pressure on sentiment as a result of European-based legal action initiated by a former joint venture partner.
On Friday, the share closed at R60.50 after touching R59.59, it’s lowest level in two-and-ahalf years. On Thursday the Dutch court heard an application for an order for an investigation into Steinhoff International’s 2016 annual accounts.
Steinhoff said it presented its position to the court and remained confident the arguments, supported by independent lawyers and legal opinions, would lead to the rejection of the petition. “The chamber will now deliberate and Steinhoff expects a court decision to be presented within the next two months.”
Earlier in the week Steinhoff CEO Markus Jooste said “the annual accounts of Steinhoff International were established according to all applicable rules and to our best knowledge. The 2016 annual accounts are correct and received an unqualified opinion by our financial auditors. The allegations brought against Steinhoff are unfounded and rejected by Steinhoff.”
The application to the Dutch court was brought by Steinhoff’s former joint venture partner, Andreas Siefert, who is embroiled in a legal battle in Germany relating to the dismantling of the partnership.
The Dutch legal action relates to the accounting treatment of the joint venture. “The company [Steinhoff International] consolidated the investment ... in compliance with IFRS [International Financial Reporting Standards] .... The opposing party is questioning the consolidation,” said Steinhoff.