Germany investigates unit of South Africa's Steinhoff International - CNBC Africa

Germany investigates unit of South Africa's Steinhoff International

Southern Africa

by Tendai Dube 0

Germany investigates unit of South Africa's Steinhoff International. Photo: Wikimedia

South Africa's Steinhoff International is being investigated by the German authorities for the accounting of certain transactions by its German unit, the company said on Friday, sending its shares down more than 8 percent.

The furniture retailer, which is due to start trading on the Frankfurt Stock Exchange on Dec. 7, said the authorities were conducting a tax investigation and reviewing the way the company valued some of its assets.

Shares in Steinhoff were down 8.4 percent at 76.02 rand by 1028 GMT, underperforming a 1.6 percent fall of the Johannesburg Stock Exchange's benchmark Top-40 index.

Steinhoff's offices in Westerstede were searched by the authorities on Nov. 26 in connection with the investigation, the company said.

It said its German unit was cooperating with the authorities and had taken steps to resolve the issue.

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