Steinhoff shares Tuesday Price Slid 3.5% to R5.25 after adverse court ruling on Poco

Steinhoff International’s share price slid 3.5% to R5.25 on Tuesday morning following an adverse court ruling on Monday night.

The lawsuit was brought against Steinhoff by former business partner Andreas Seifert who sold half of German retail chain Poco to the South African furniture group.

Steinhoff issued
a statement on Tuesday morning saying the Enterprise Chamber of the Amsterdam Court of Appeal had ordered it to amend its 2016 financial statements to say it owned only half, not all, of Poco, and that Seifert owned the other half.

The legal battle between Seifert and Steinhoff over Poco predates the accounting scandal that came to light on December 6 when Markus Jooste resigned as CEO and the company said it had to delay releasing its results for the year to end-September. Steinhoff later said it would have to restate its results going back several years.

"The company’s 2016 accounts were prepared on the basis that the group owned 100% of Poco, given the company’s position that the 50% interest of the Seifert Entities in Poco should be redeemed due to certain actions by the Seifert Entities," Steinhoff said in Tuesday’s statement.
Monday night’s ruling does not end the legal fight between Seifert and Steinhoff over Poco, which is to be settled in German courts.

"It should be noted that whilst the judgment of the enterprise chamber has ruled in relation to the group’s accounting treatment for Poco, the ongoing German Poco proceedings will in due course determine the parties’ respective ownership interests in Poco."

Businesslive.