Steinhoff hit with R1 million fine for not disclosing ratings downgrade
The Johannesburg Stock Exchange (JSE) has hit Steinhoff with a R1 million fine after it failed to disclose credit downgrades by ratings agency Moody’s to its shareholders.
In a statement released on Tuesday (21 August), the JSE said that Steinhoff was found to be in breach of the exchange’s listings requirements for failing to publish an announcement on SENS in respect of Moody’s rating action of 7 December 2017 as well as for the late announcement of Moody’s further rating action on 28 December 2017.
“According to SIH, it was informed by Moody’s of the publication of the rating downgrade on 8 December 2017 at 00h29 (SA time). SIH failed to publish an announcement on SENS on 8 December 2017 to inform stakeholders of Moody’s rating action in accordance with the aforementioned listings requirement,” the JSE said.
It added that Steinhoff only published an announcement on SENS at 17h33 on 28 December, after market close on that day, to inform stakeholders of Moody’s further rating action.
“The JSE has decided to impose this public censure against the issuer as well as a fine in the amount of R1,000,000 in relation to the above mentioned breaches of the listings requirement,” it said.
Furniture retailer Steinhoff plunged more than 90% in December after it said it couldn’t release its financial results and was trying to figure out if there was a 6 billion-euro hole in the balance sheet.
The company in July won support from creditors to restructure 9.4 billion euros of debt.
Read: How ex-Steinhoff CEO Markus Jooste made millions by dealing in ‘cheap’ stock
Loading ...