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Steinhoff shares plunge 60% after CEO quits

06 December 2017

Earlier this year Poundland put United Kingdom discount chain 99p Stores - which it bought for £55m two years ago - into administration.

Shares in Poundland's parent firm Steinhoff International have lost nearly 60% of their value after its chief executive quit amid allegations of accounting irregularities.

Poundland parent company Steinhoff International has seen its shares plummet 66 per cent as chief executive Markus Jooste resigned with immediate effect amid an accounting scandal.

It said it would also investigate whether previous financial results need to be corrected.

Steinhoff said Wiese would "embark on a detailed review of all aspects of the company's business with a view to maximising shareholder value", but its South African shares slumped 65 percent to an eight-year low of 15.87 by 1120 GMT.

The Supervisory Board has today appointed its Chairman, Dr. Christo Wiese, as Executive Chairman (Delegated Supervisory Chairman) on an interim basis.

Shareholders and other investors in Steinhoff are advised to exercise caution when dealing in the securities of the Group.

Steinhoff's share price fell by more than 50% by midday on Wednesday, dropping to about R19 from its Tuesday close of R45.65. Steinhoff derives about 60% of its earnings in Europe and 34% in Africa.

Over near two decades Mr Jooste has overseen Steinhoff's expansion from a South African furniture manufacturer to one of the world's biggest household goods retailers.

The company said (http://www.steinhoffinternational.com/downloads/2017/Announcement%205%20Dec%202017%20JSE.pdf) "new information has come to light today which relates to accounting irregularities requiring further investigation".

While the nature of its accounting investigation was not disclosed, it had already been known that it was facing a tax probe in Germany.

Steinhoff shares plunge 60% after CEO quits