Steinhoff announces dividend freeze, creditor waiver proposals | Fin24
 
  • Growing Demand

    Automaker Ford says it will be adding 1 200 new jobs and a third shift at its Pretoria assembly plant.

  • 'Deeply Upsetting'

    Dan Matjila, the former CEO of the Public Investment Corporation, has denied receiving a R5m bribe.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Steinhoff announces dividend freeze, creditor waiver proposals

Feb 02 2018 16:16
Jan Cronje

Cape Town - Steinhoff on Friday announced that it would be halting dividend payments and approaching some of its creditors for waivers, as it seeks to hold onto its money. 

“[Steinhoff] will shortly be recommending that certain of its financial creditors support the group by providing limited waivers under certain of the group’s existing European holding companies’ financing arrangements,” it said in an update to shareholders. 

The Stellenbosch-headquartered retail giant, which has been under the cloud of an accounting scandal since December 5 last year, did not say which financial institutions it would be approaching.

It would be taking the proposals to its creditors "in the coming weeks". 

“The key elements of the waiver proposals will be to seek a waiver of any possible defaults (including any related certification requirements) in respect of the matters referred to in the public announcements of the company to date since 5 December 2017.

“[These include], in particular, matters associated with the postponement of the publication of the company’s consolidated financial statements for the year ending 30 September 2017 and the restatement of any prior year accounts.”

Steinhoff has said it will be only be able to publish its 2017 financial statements once forensic auditors PwC have completed their independent report into the group. 

When its top leadership briefed Parliament this week, they said they could not yet give a date for the completion of PwC's investigation.

Steinhoff also said that, as part of its waiver proposals, it was “likely to voluntarily agree” to halt dividend payments for a period to 30 June 2018, as well as most acquisitions. 

The international retailer's shares were trading at R6.54 on the JSE at 15:45, down 3.1% on the day. 


* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...