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".
Steinhoff International BV issued SENS announcements on 4 & 6 Dec 2017. These resulted in the share price of Steinhoff declining substantially— JSE (@JSE_Group) December 7, 2017
Steinhoff share continues to trade on Frankfurt Stock Exchange— JSE (@JSE_Group) December 7, 2017
We have considered all the facts and info at our disposal & has decided not to suspend Steinhoff or halt trading of its shares in SA market— JSE (@JSE_Group) December 7, 2017
The JSE added, however, that it has asked Steinhoff for details regarding the financial irregularities "as a matter of urgency".
We are reviewing trading ahead of SENS announcements & if we identify any potential insider trading we will refer it to FSB— JSE (@JSE_Group) December 7, 2017
We will continue to engage Steinhoff & its sponsor & will monitor developments to ensure the integrity of our market— JSE (@JSE_Group) December 7, 2017
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.
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.Suggest a correction