Steinhoff shares plunge after CEO quits
By Renee Bonorchis - Dec 6th 2017, 14:16
Steinhoff International plunged by a record 62% after CEO Markus Jooste quit in the wake of irregularities in the company’s accounts that require further investigation.
Shares in the furniture and clothing retailer fell as low as R17.56 before paring losses to trade 61% lower at R18 as of 09:10 in Johannesburg. That wiped R117bn off the value of the stock to give it a market capitalisation of R76.2bn, according to data compiled by Bloomberg.
The owner of France-based Conforama and Pep in Africa has appointed auditor PwC to probe the matter, it said on Tuesday. South African billionaire and chairperson of the company, Christo Wiese, will run the company on a temporary basis.
The retailer, which has origins in South Africa, has a base in Amsterdam and a primary listing in Frankfurt, said on Monday it wasn’t able to release audited full-year financial results on Wednesday due to matters related to a criminal and tax investigation in Germany.
It had previously rejected allegations of dishonesty made in Manager-Magazin. That report said Jooste is among employees being investigated by German prosecutors in a 2015 case linked to possible accounting fraud.
Steinhoff shares were trading at R20.74 on the JSE shortly after 10:00.
Billionaire Christo Wiese cuts Shoprite stake to free up about R3.8bn
27/06/2018 - 11:42
South African billionaire Christo Wiese will reduce his stake in Africa’s biggest supermarket chain by about R3.8bn as the businessman most stung by the near collapse of Steinhoff boosts his liquidity.
Pepkor name is back as Star distances itself from Steinhoff
30/05/2018 - 14:24
Steinhoff Africa Retail (Star) is planning to distance itself from its scandal-ridden parent by changing its name back to the original Pepkor.
Steinhoff may consider reducing its stake in Steinhoff Africa Retail
26/03/2018 - 11:31
Steinhoff International is considering the sale of part of a R58bn stake in its separately listed African operations as the crisis-hit retailer looks to shore up liquidity, according to two people familiar with the matter.
Merger with Steinhoff not an option, says Shoprite CEO
01/03/2018 - 10:10
Shoprite CEO Pieter Engelbrecht says a merger would not make sense now.
Wiese sees ray of light after losing billions on Steinhoff
28/02/2018 - 09:17
Christo Wiese lost more than $2 billion when Steinhoff International Holdings NV plunged following the discovery of accounting irregularities. Luckily for him, he’s still the biggest investor in Shoprite Holdings Ltd., an African supermarket giant whose shares are at a record high.