Steinhoff Africa Retail extended a two-day fall to more than 10% after the continent\u2019s biggest clothing retailer said it won\u2019t pay a half-year dividend and announced charges related to its scandal-hit parent company.<\/p>\n
The owner of clothing chains including Pep and Ackermans was spun off by Steinhoff International Holdings NV three months before the majority shareholder reported accounting wrongdoing that wiped 90% off its market value.<\/p>\n
STAR, as the South African retailer is known, is now considering a name change and has been on the hunt for new non-executive directors that have no connection with Steinhoff, which still owns a 71% stake.<\/p>\n
\u201cIt is understandably difficult for the market to comprehend what the impact of the events at Steinhoff is or can be,\u201d Cape Town-based STAR said in a statement Tuesday. The company will put aside 500 million rand ($40 million) that may be used to compensate management of Pepkor Holdings Ltd, who have lost out due to the decline in Steinhoff stock.<\/p>\n
Steinhoff bought Pepkor for $5.7 billion in 2015.<\/p>\n
STAR shares, which were initially dragged down by the panic that ensued from the revelations at Steinhoff, are still 21% lower since the company listed in September, valuing STAR at R56 billion. They traded 4.1% lower at R16.21 in late morning trade in Johannesburg.<\/p>\n
STAR said revenue gained 10%t to R33 billion in the six months through March, while operating profit rose 9%.<\/p>\n
The company, which has more than 5,100 stores, revised down its store-opening plan to 330 for the full year from 350.<\/p>\n