Steinhoff International Holdings N.V. : RESPONSE TO PRESS STATEMENT PUBLISHED BY MANAGER MAGAZIN
Disclosure of inside information in accordance with Article 17 MAR, transmitted by DGAP, a service of EQS Group AGSTEINHOFF INTERNATIONAL HOLDINGS N.V. ("Steinhoff" or the "Company") - RESPONSE TO PRESS STATEMENT PUBLISHED BY MANAGER MAGAZIN
Stellenbosch, 24 August 2017 - Steinhoff shareholders are referred to the statements made by Manager Magazin. The company rejects the allegations of dishonesty contained in the statements. In particular substantial facts and allegation are wrong or misleading. In the information published we note that the source of some of the allegations is the former joint venture partner with whom the group's subsidiaries are embroiled in litigation.
Shareholders are also referred to the press release dated 4 December 2015 in which the Company confirmed that one of its German subsidiaries Steinhoff Europe Group Services GmbH (SEGS) has been involved in an investigation focusing on the adherence to and arms' length valuation and proper accounting pursuant to German GAAP.
Shareholders are referred to the various updates released on this investigation confirming that the company appointed legal and external audit firms in Germany to investigate the matter independently. They have concluded that no evidence exists that any of the transactions raised by the investigation in terms of section 331 HGB can give rise to any contravention of any provision of German commercial law and were reflected correctly in the statement of financial position of the company.
The group has engaged constructively with the authorities to find a solution. No further investigations have been initiated nor any searches conducted as alleged in the article.
Certain companies in the group are involved in disputes where the outcomes are uncertain. However, the directors are confident that they will be able to defend these actions successfully and that the potential impact on the group will not be material.
The Company wishes to advise that further allegations contained in the article relate to ongoing civil litigation. The existence of this litigation has previously been disclosed by the Company in various communications and publications.
The group's relationship with a joint-venture partner in Europe ended in disputes that are currently the subject matter of several ongoing legal proceedings. These disputes relate to alleged breaches arising from agreements with the former joint-venture partner, who is seeking to obtain and/or retain shares in Steinhoff entities. Management believes that the outcome of the disputes should result in monetary remedy to be paid by the group. The payment of any such monetary remedy would not have a material adverse effect on the trading and/or financial condition of the group. Management believes that it has adequately provided for the related liabilities that could result from the dispute in the consolidated results. There is no other litigation, current or pending, which is considered likely to have a material adverse effect on the group. It is evident that the former joint venture partner abuses the press as part of the process of litigation.
The company will review all the allegations contained in the article and make further announcements as required.
24-Aug-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English
Company: Steinhoff International Holdings N.V. Herengracht 466 1017 CA Amsterdam
Netherlands Phone: +27218080700 Fax: +27218080800 E-mail: email@example.com Internet: www.steinhoffinternational.com ISIN: NL0011375019 WKN: A14XB9 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News Service
603925 24-Aug-2017 CET/CEST