The Johannesburg Stock Exchange on Feb. 1 said a subsidiary of South African retailer Steinhoff International Holdings NV faces suspension from trading unless it files its annual report on or before Feb. 28.
Steinhoff Investment Holdings Ltd., a wholly owned unit that holds Steinhoff International's South African assets including its majority stake in Steinhoff Africa Retail Ltd., failed to comply with listing requirements to submit its annual report within four months of the end of its fiscal year, the JSE said in a statement.
"Accordingly, this announcement is issued to warn preference shareholders that, if Steinhoff Investments fails to submit its annual report on or before 28 February 2018 then the preference shares of Steinhoff Investments will be suspended in accordance with the provisions of the requirements," it added.
Steinhoff Investment's fiscal year ended Sept. 30, 2017, the same as its parent company. Under the listing requirements, it had until Jan. 31, 2018, to file its annual report. The JSE notice effectively gives the company another month to comply with the listing rules or face suspension from trading.
An accounting scandal at Steinhoff International, which was disclosed Dec. 6, 2017, and the appointment of an independent auditor to examine its books has delayed reporting of consolidated accounts. In a briefing to South Africa's parliament on Jan. 31, Steinhoff International said the probe was ongoing. It indicated previously that its accounts for the fiscal years 2015 and 2016 need to be restated.
In a separate statement on Feb. 1, Steinhoff International warned shareholders of Steinhoff Investments that if the JSE imposes a suspension, trading in its preference shares would not be possible.
Steinhoff International, which owns brands including Sleepy's in the U.S., Poundland in the U.K. and Conforama in continental Europe, said the JSE announcement relating to its subsidiary had "no bearing on the listed ordinary shares of the company."
That company, which is incorporated in the Netherlands, has a primary share listing in Frankfurt and a secondary listing in Johannesburg.
