Steinhoff 98% down

Shares in global furniture and retail conglomerate Steinhoff International [JSE:SNH]reached a new low in early trade in Wednesday morning, losing another 5% of the value on the day to trade at just R1.18 a share.

The stock – which had already fallen by 9.9% on Tuesday – reached a new low of R1.18 a share on Wednesday morning before recovering somewhat to trade at R1.24 at 12:53.

Steinhoff shares plummeted in value after financial and accounting irregularities came to light at the company in December 2017.

READ MORE: Steinhoff implosion staggers SA

They are now trading at just 1.3% of their all time high of R96.85 a share in late March 2016.

The accounting irregularities are the subject of a forensic probe by PwC, while the the firm’s disgraced former CEO Markus Jooste is being investigated by the Hawks.

Steinhoff has said it would only be able to release its most recent audited financial results once the PwC probe has been completed.

Despite the volatility in the international retailer’s stock, the JSE has not suspended its shares as Steinhoff continues to trade on the Frankfurt Stock Exchange in Germany, where it has its primary listing.

Steinhoff is technically in breach of the JSE’s listing requirements, having failed to publish its 2016/2017 financial statements in time. However, the Frankfurt bourse has allowed it to continue to trade and the JSE has followed suit.

Steinhoff and STAR

While Steinhoff risks becoming a penny rand stock, shares in its subsidiary Steinhoff Africa Retail [JSE:SRR] rose slightly on Wednesday following the release of its interim results for the six months ended March 2018.

At 12:42, STAR stock was changing hands at R17.20, up 2% on the day.

STAR, which is listed separately from Steinhoff on the Johannesburg Stock Exchange, incorporates the assets of Steinhoff’s Africa retail operations, including Pep, Ackermans, Tekkie Town and Timbercity.

READ MORE: Steinhoff dances to zombie drums

It announced on Tuesday that it would be changing its name back to Pepkor Holdings in the wake of the Steinhoff scandal. The proposed name change still needs shareholder approval.

Steinhoff remains the largest shareholder in STAR.

STAR CEO Leon Lourens told Fin24 on Tuesday that markets were able to differentiate between what was happening at Steinhoff and corporate governance at STAR.

“We still have these solid companies that have performed very well,” he said. “The majority of them have been part of Pepkor for many years. I think the market sees that.” — Fin 24 

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Jan Cronje
Jan Cronje
Fin24 Journalist based in Cape Town.
Tehillah Niselow
Tehillah Nieselow
Tehillah Nieselow is a Journalist at Power FM. She Covers labour issues, strikes, protests and general stories

Related stories

Ace pulls diplomatic strings for Steinhoff-linked pal

If the ANC general secretary has his way, Ithala chair Roshan Morar could soon be an ambassador

White men still rule and earn more

Women and black people occupy only a few seats at the JSE table, the latest PwC report has found

Women are South Africa’s changemakers and they deserve more

The truth is the economy still largely revolves around men, especially white men like me, writes Alef Meulenberg.

Black Lives Matter: The South African economy’s unfinished business

Tshegofatso Mathe spoke to people in the South African business world about structural racism in our economy, and what must be done to overcome it

Coronavirus hammers global growth 

South Africa’s mining and manufacturing sectors are predicted to be down for the first quarter of 2020 because of low demand from China 

Use the workplace to stop socially embedded violence

The judicial system alone and appealing to miscreants has not stopped attacks on women

Subscribers only

Toxic power struggle hits public works

With infighting and allegations of corruption and poor planning, the department’s top management looks like a scene from ‘Survivor’

Free State branches gun for Ace

Parts of the provincial ANC will target their former premier, Magashule, and the Free State PEC in a rolling mass action campaign

More top stories

Air pollution link in 15% of global Covid-19 deaths

Researchers have found that, because ambient fine particulate air pollution aggravates comorbidities, it could play a factor in coronavirus fatalities

Mboweni plans to freeze public sector wage increases for the...

The mid-term budget policy statement delivered by the finance minister proposes cutting all non-interest spending by R300-billion.

SAA to receive R10.5-billion government bailout after all

Several struggling state-owned entities received extra funds after the medium term budget policy speech

BMW X3 thrives in the M stable

The compact SUV is so at home with its new badge that’s it’s surprising it didn’t happen sooner

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday