NEWS

BREAKING: JSE Decides Not To Suspend Scandal-Hit Steinhoff

"We have considered all the facts... at our disposal [and have] decided not to suspend Steinhoff or halt trading of its shares in [the SA] market."

07/12/2017 10:47 SAST | Updated 07/12/2017 10:49 SAST
Mike Hutchings / Reuters
South African magnate Christo Wiese, whose companies include Steinhoff and investment heavyweight Brait, Picture taken September 27, 2016.

The Johannesburg Stock Exchange (JSE) has decided not to suspend furniture giant Steinhoff, despite almost R200-billion of the company's market value disappearing following allegations of financial irregularities.

In a series of tweets, the JSE said it had come to the decision after considering "all the facts and information at [their] disposal".

The JSE added, however, that it has asked Steinhoff for details regarding the financial irregularities "as a matter of urgency".

MoneyWeb reported on Thursday that the company released a statement revealing a figure on the "investigation, validity and recoverability of certain non-South African assets of the company which amount to circa €6-billion". That equates to almost R100-billion.

READ: SA's Capitalist Class In Crisis: Steinhoff, Naspers Battered

Steinhoff's share price plunged 60% when the local markets opened on Wednesday –– on the news that its CEO, Markus Jooste, one of the country's most celebrated business barons and a favourite in Stellenbosch social circles, had resigned because of questions about the company's financial reporting.