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Steinhoff African unit to repay $1.2 billion loan to parent

Staff Writer |
Steinhoff's African business is preparing to repay $1.2 billion it owes to its parent.

Steinhoff, the owner of more than 40 retail brands including Conforama, Mattress Firm and Poundland, is seeking to raise $2.4 billion to shore up its finances.

More than $10 billion has been wiped off Steinhoff's market value in the last two weeks following its disclosure of accounting irregularities and its chief executive's exit.

South Africa's Independent Regulatory Board for Auditors (IRBA) is investigating Steinhoff's auditor following the retail group's disclosure of accounting irregularities.

"This entity (Steinhoff) is audited by Deloitte South Africa, who has confirmed that it will fully cooperate with the IRBA during the investigation," the body's chief executive Bernard Agulhas said.

Christo Wiese on Friday called off plans to sell his stake in grocer Shoprite to Steinhoff's African arm, a day after he resigned from Steinhoff's board in the midst of an accounting scandal.

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