JOHANNESBURG, South African exchange operator JSE launched an investigation on Monday into whether Steinhoff broke disclosure rules, heaping pressure on the retailer as it tries to contain an accounting scandal.
Shares in Steinhoff fell by 80 percent last week after the international retail group, whose brands include Poundland and Mattress Firm, disclosed accounting irregularities and parted ways with veteran chief executive Markus Jooste.
The JSE said in a statement it was investigating whether there had been any breaches of its listing requirements, adding this included any breaches in relation to previous financial disclosures made to the public by Steinhoff International.
Steinhoff has a secondary listing on the bourse, which is also reviewing trading in its shares ahead of last week’s announcements, which included the company delaying its earnings report.
Two days before Steinhoff’s initial announcement, trading volumes in its shares jumped to between 27 and 32 million. This was the highest since Sept. 22 when the company said it expected a Dutch court to throw out a petition by its former joint venture partner to order a probe into the company’s accounts.
Source: NAM NEWS NETWORK