South African retailer Steinhoff on Tuesday reported a $4 billion operating loss in the 2017 fiscal year, in a much-delayed earnings report revealing the impact of a $7.4 billion accounting fraud.
The company blamed writedowns for the loss as it cleans up its balance sheet. The total writedowns have already topped 13 billion euros since revealing the fraud that left it on the brink of collapse and wiped out more than 200 billion rand of shareholder equity. The retailer has delayed releasing results several times as it waited for the findings of the PwC investigation and audit process of its external auditor Deloitte.South Africa’s biggest corporate scandal has all but wiped out shareholders’ equity and led to several resignations, including chief executive Markus Jooste, who was instrumental in putting Steinhoff on investors’ radar screens.
Months before Steinhoff uncovered dodgy bookkeeping practices, it had been on an acquisition spree in Europe, scooping up Poundland in the UK and paying an eye-popping 115 percent premium to buy Mattress Firm for $4.8 billion.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Business Maverick: Trump Had Losses of $1.17 Billion Over a Decade: NYTPresident Donald Trump, who won the presidency in part on his image as a successful business mogul, lost $1.17 billion over 10 years on failed business deals, according to tax records obtained by the New York Times.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK: Trusts under BEE scrutiny in yet another dramatic policy shiftOne thing certain about SA’s business and economic environment is uncertainty. Targets or policies seemingly set in stone are suddenly not worth the paper they were written on, leaving investors scratching their heads if they are not banging them against walls. This is the case with the sudden U-turn last week by the BEE Commission, which signalled that trusts will no longer count for black participation in ownership structures. Expect corporate SA to draw a line in the sand. Meanwhile, the mining industry, which has had its own issues with trusts, should be out of the line of fire.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Strong ANC Win Would Boost S. African Asset Prices, Goldman SaysA strong win for South African President Cyril Ramaphosa’s African National Congress in next week’s election would trigger a rally in asset prices, according to Colin Coleman, head of sub-Saharan Africa at Goldman Sachs Group Inc. Unfortunately for Goldman Sachs and Colin Coleman, we will vote for EFF... No,a Coalition should do the trick,Same as in Johannesburg. It's true. The international opinion formers that define what we pay for the necessary debt for infrastructure and development know a vote for CyrilRamaphosa and the MYANC is a vote for the future.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Gold Gets Taken for a Ride as Price Gyrates After Fed CommentsGold traders can be forgiven for feeling a bit queasy as efforts to parse economic signals from the U.S. Federal Reserve put them on a roller-coaster ride.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Google Will Now Auto-Delete Some User Data — If You AskAlphabet Inc.’s Google said it will let users set up their profiles to automatically delete location and web-browsing data, giving people a middle ground to the internet giant’s always-on or always-off data hoovering mechanisms.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Thursday May 2: Five Things You Need to Know to Start Your DayThe Fed stands pat, mostly. U.S. Treasury Secretary Steven Mnuchin calls China trade talks “productive,” and yet another Brexit compromise is brewing. Here’s what’s moving markets.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Emerging Market Investors Buy Up Bond ETFsIf investors wanted evidence that demand for bonds in the local currency of emerging market countries including SA isn’t fleeting, here it is: the biggest exchange-traded fund tracking local debt in emerging markets has seen 16 weeks of inflows.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Friday May 3: Five Things You Need to Know to Start Your DayIndia begins evacuations as Cyclone Fani approaches, Trump and Xi ponder their next meeting, and Tesla plans to raise another $2 billion. Here’s what’s moving markets.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Tesla Manager Sees Risk of Battery-Minerals Shortage in FutureBooming demand for electric vehicles and insufficient investment in mines could result in a global shortage of minerals needed to manufacture rechargeable batteries in a few years’ time, a Tesla Inc. representative told U.S. officials and mining executives in a meeting in Washington.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK: The Shoprite/Wiese deal: Is there a plan B?It’s quite a standoff. The Shoprite board has recommended that its founder and chairman Christo Wiese should be paid R3.3bn for the high-voting shares that were part of his founding stake. Some shareholders don’t like it and it will only take 15% of them to jettison the deal. Does Wiese have any other options? There is one obvious one — he could sell the shares to an outsider. But will he?
Source: dailymaverick - 🏆 3. / 84 Read more »