The JSE has fined Pepkor Holdings, formerly known as Steinhoff Africa Retail, R5-million for breaching the local bourse’s listing requirements, with R1-million of the R5-million suspended for two years.
Pepkor, then still known as STAR, listed on the JSE on September 20, 2017.
The JSE said on Monday that the company had not disclosed certain financial information about loans in its pre-listing statement and its 2017 annual financial statements.
It said that at the time of its listing, STAR’s subsidiary – then known as Pepkor Holdings – formed part of a group of companies which guaranteed the the R15-billion domestic medium term note programme of Steinhoff Services Limited
STAR had also, through its subsidiaries, provided loans to directors and key management personnel in terms of the Pepkor Management Investment Scheme via an entity called Business Ventures Investments. These loans amounted to R9-million as of September 30, 2017, and R18-million in aggregate as of September 30, 2016. It was also party to a R440-million guarantee of third party debt related to Business Ventures Investments.
“The company has fully cooperated with the JSE during its investigation and provided the JSE with sufficient assurance that steps have been taken to address these breaches,” the local bourse said in a statement on Monday morning. “Notwithstanding this fact, the JSE has decided to impose this public censure against the company with a fine in the amount of R5-million of which R1-million is suspended for a period of two years.”
Pepkor, in a statement, said it “acknowledged that inadequate disclosures were made during the process of its listing and the publication of its annual financial statements in 2017”.
“The board and management have engaged in a proactive and transparent manner with the JSE on the matter and welcomes the conclusion of the investigation.” — Fin 24