International retailer Steinhoff’s share
price is more than 6% down amid reports that the Christo
Wiese-controlled company has been targeted for a tax investigation.
Steinhoff said the Westerstede offices of Steinhoff Europe Group Services GmbH (SEGS), a German subsidiary of Steinhoff International, had been searched on November 26.
Steinhoff said the authorities were reviewing the balance sheet treatment of certain transactions involving transfers of participations and intangible assets among SEGS, as well as at additional subsidiaries and third parties.
The investigation focuses on adherence to an arm’s-length valuation and proper accounting pursuant to German GAAP.
"SEGS
is fully committed to support the authorities, and has begun to take
immediate steps in clarifying and resolving these matters," Steinhoff
said.
At 10.53am Steinhoff was 6.51% lower at R77.60. It has risen 30.45% so far this year.
Momentum SP Reid analyst Alex Sprules said Steinhoff was a large entity and management was bound to make errors.
"We are unsure at this time as to the seriousness of the allegations," he said.
Momentum has not changed its add recommendation on the share.
Steinhoff said the Westerstede offices of Steinhoff Europe Group Services GmbH (SEGS), a German subsidiary of Steinhoff International, had been searched on November 26.
Steinhoff said the authorities were reviewing the balance sheet treatment of certain transactions involving transfers of participations and intangible assets among SEGS, as well as at additional subsidiaries and third parties.
The investigation focuses on adherence to an arm’s-length valuation and proper accounting pursuant to German GAAP.
"SEGS
is fully committed to support the authorities, and has begun to take
immediate steps in clarifying and resolving these matters," Steinhoff
said.At 10.53am Steinhoff was 6.51% lower at R77.60. It has risen 30.45% so far this year.
Momentum SP Reid analyst Alex Sprules said Steinhoff was a large entity and management was bound to make errors.
"We are unsure at this time as to the seriousness of the allegations," he said.
Momentum has not changed its add recommendation on the share.
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