December 18, 2017 / 11:35 AM / 10 months ago

South Africa's Steinhoff to issue update after meeting bankers on Tuesday

JOHANNESBURG, Dec 18 (Reuters) - South Africa’s Steinhoff will provide further information about its finances following a meeting with bankers on Tuesday, the retailer said on Monday.

Steinhoff is in the throes of an accounting scandal that has wiped more than $10 billion off its value over the past two weeks and prompted the resignation of chairman and biggest shareholder Christo Wiese.

The owner of more than 40 retail brands including Conforama, Mattress Firm and Poundland, is working with U.S. investment bank Moelis & Co to help it prepare for a delayed meeting with lenders in London on Tuesday to discuss its financial health.

Steinhoff, which moved its primary share listing from Johannesburg to Frankfurt two years ago, has been under investigation for suspected accounting fraud in Germany since 2015. Four current and former managers are under suspicion of having overstated revenues at subsidiaries, prosecutors said.

The company has previously said that the investigation related to whether revenues were booked properly, and whether taxable profits were correctly declared.

Shares in Steinhoff were up 6 percent and 5 percent in Johannesburg and Frankfurt, respectively on Monday. The stock is still down about 80 percent since its disclosure of accounting irregularities on December 5.

At that time, it also delayed the publication of financial results and the departure of long-serving chief executive Markus Jooste. (Reporting by Tiisetso Motsoeneng; Editing by Zandi Shabalala/Keith Weir)

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