DURBAN – Troubled retailer Steinhoff International's share price traded weaker yesterday, despite the group reaching an agreement with Dutch investor group VEB to suspend its claims by another six weeks.
The share fell 1.62 percent on the JSE yesterday to close at R1.82, despite the temporary relief. Steinhoff said investment group VEB and European investors had agreed to extend the suspension of the collective action between them in the Netherlands for a further six weeks until May 15.
VEB launched a lawsuit against Steinhoff last year after the share price declined by more than 95 percent following the admission to accounting irregularities in December 2017.
Steinhoff’s former chairperson Christo Wiese also launched a separate lawsuit of R59 billion last year to add to the company’s woes.
PricewaterhouseCoopers, which was hired by Steinhoff to conduct a forensic investigation in the group, revealed this month that an estimated €6.5bn (R104bn) worth of fictitious transactions that took place between 2009 and 2017 had inflated the group’s profits and asset value. VEB and European investors, as a collective representative, has sued Steinhoff in the Dutch court for certain financial statements, prospectuses and press releases, which according to VEB are incorrect and misleading, the retailer said.