Investec warns of fallout from Steinhoff crisis

Sun Met

PPF to lay criminal charges against Steinhoff's Markus Jooste

In a statement today, Investec - a United Kingdom listed investment bank - said that its South Africa business does have some derivative exposures linked to Steinhoff's share price, adding that the loss on these could be zero, with a maximum potential loss of 3.0% of the Investec group's post-tax operating profit.

In a statement, Steinhoff said: "The group is now focussed on safeguarding operational liquidity to continue funding existing operations throughout its various subsidiaries".

On Friday the company had said it was postponing its regular annual lenders' meeting in London from December 11 to December 19 as a result of it having postponed its financial results pending the outcome of the accounting investigation.

"On the positive side, it does look like Christo Wiese is doing a salvage job", Woods added, referring to the retail group's biggest shareholder and its chairman, who is temporarily at the helm.

Steinhoff has been on shopping spree since 2011 when it took over French furniture retailer Conforama.

Kesha and Macklemore will tour together, play Nashville's Bridgestone Arena
KESHA's latest album, Rainbow , hit #1, her headlining tour was completely sold out and she received two Grammy nominations. Tickets will go on sale to the general public on Friday at noon local time with pre-sale beginning Wednesday.

The FTSE 250 listed firm also said it has credit exposures to the Steinhoff group of companies, which represent a "small" portion of its balance sheet, and the company said it is not expected to suffer any loss on these exposures.

However, it added: "Investec Bank Limited (South Africa) does have certain derivative exposures linked to the Steinhoff share price, where a trading loss could materialise".

As well as Poundland, which it acquired past year for £610m, Steinhoff is the parent firm of Harveys and Bensons For Beds.

"The loss could be zero but the maximum potential loss could be approximately 3% of the Investec group's post-tax operating profit".

Latest News