JSE puts Steinhoff bonds on notice

JOHANNESBURG – Steinhoff’s JSE-listed debt securities- 11 bonds with an outstanding value of R6.8 billion could be suspended of the company fails to publish audited financial statements soon.

The JSE would issue a cautionary if Steinhoff Services, an entity through which the bonds were listed, failed to deliver financial statements by the end of January, said Andre Visser JSE GM of issuer regulation on Friday.

“We are very strict when it comes to financial statements.” Visser said. The bourse would grant one month’s grace to publish the financials, as it had done with Eskom, failing which it could suspend the bonds, he explained.

The bonds being suspended would come as a huge blow to Steinhoff. That is going cap in hand to lender to meet its clash flow needs after accounting irregularities and the unavailability of audited financial statements led t liquidity issues.  Steinhoff said it was seeking approvals for 140 million pounds to plug near-term cash flow needs.

The group as well as its auditors are also expected to provide restated financials for the 2016 and 2015 financial years. If the company failed to produce its 2017, 2016 and 2015 results by the end of January, it could face a sanction of up to 1 million pounds from the Frankfurt Stock Exchange, where it has its primary listing.

“If the issuer does not fulfil its obligations in the long term or proper stock-market trading is not guaranteed in the long run, it could be a reason for a delisting” said spokesman for Deutsche Borse.

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