Why Steinhoff (formerly SA’s 5th biggest company) lost 62% of its value in a day

One would have to be an angel not to be angered by this sort of drivel…

Christo Wiese

The difference between the two announcements worries me…

John Burke, JSE

To me it sounds like there could be fraud involved here.

Sean Ashton, Anchor Capital

About R117 billion – a whopping 62% - was wiped off the value of Steinhoff on Wednesday.

This comes after the furniture giant said it would launch an investigation into accounting irregularities, its chief executive of almost 20 years - Markus Jooste - resigned, and it postponed full-year results.

Steinhoff’s largest shareholder and chairperson, billionaire Christo Wiese, will take charge of the company.

The company’s shares recovered only slightly on Thursday.

The Money Show’s Bruce Whitfield played a clip from a few months ago in which he interviewed Steinhoff Chair Christo Wiese.

Whitfield also spoke to John Burke (Director of Issuer Regulation at the JSE) and Anchor Capital Chief Investment Officer Sean Ashton.

Listen to the interviews in the audio below (and/or scroll down for more quotes from it).

The company rejects these allegations of dishonesty…

Christo Wiese

This matter has been floating around since 2015.

Christo Wiese

It [Steinhoff] is primarily listed in Frankfurt.

John Burke, JSE

We’re keen to get information to the market as soon as possible.

John Burke, JSE

There are very specific reasons why we can suspend trade…

John Burke, JSE

The most important thing for us is to put shareholders in a positon where they can make an informed decision.

John Burke, JSE

There’s clearly been a breakdown of institutional trust in the business.

Sean Ashton, Anchor Capital

There’s a lot of debt in this business - R96 billion…

Sean Ashton, Anchor Capital

In a highly levered entity, it’s probable that your bankers have lost trust…

Sean Ashton, Anchor Capital

It’s naïve to think this won’t have an impact, operationally.

Sean Ashton, Anchor Capital

We’ve trimmed our exposure today…

Click here (then “like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : Why Steinhoff (formerly SA’s 5th biggest company) lost 62% of its value in a day


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
What is a hedge fund?

What is a hedge fund?

The Money Show’s Bruce Whitfield interviews Fairtree Capital Portfolio Manager Jean-Pierre Verster.

100-year-old Truworths reports fewer sales and a 7.3% decline in earnings

100-year-old Truworths reports fewer sales and a 7.3% decline in earnings

The Money Show’s Bruce Whitfield interviews Truworths CEO, Michael Mark.

We have made progress in delivering on our promises to Marikana – Lonmin CEO

We have made progress in delivering on our promises to Marikana – Lonmin CEO

The Money Show’s Bruce Whitfield interviews Lonmin CEO Ben Magara.

4 tips for safely investing right now when everything is so hectic

4 tips for safely investing right now when everything is so hectic

Bruce Whitfield asks Personal Financial Advisor Warren Ingram for advice on how investors can safely navigate this hectic time.

German prosecutors probing Steinhoff CEO Markus Jooste (for accounting fraud)

German prosecutors probing Steinhoff CEO Markus Jooste (for accounting fraud)

The Money Show’s Bruce Whitfield interviews Steinhoff International Chairperson Christo Wiese.

Meet Shoprite’s Christo Wiese, ruler of retail (and 3rd richest African)

Meet Shoprite’s Christo Wiese, ruler of retail (and 3rd richest African)

Bruce Whitfield interviews the remarkable Wiese (net worth R100 billion!) about how it all began and where it’s going.

Popular articles
WCED 'extremely concerned' by recent child abductions in Cape Town

WCED 'extremely concerned' by recent child abductions in Cape Town

MEC of Education Debbie Schäfer confirmed that two girls aged 11 and 18 were abducted in Zonnebloem recently.

'He told me people would want to keep him quiet at any cost'

'He told me people would want to keep him quiet at any cost'

Journalist Gavin Evans says the late Mark Minnie spoke to him about his fears that those he exposed in his book might harm him.

Zille won't stop fighting to have SANDF property released for affordable housing

Zille won't stop fighting to have SANDF property released for affordable housing

Zille says properties under the control of the state should be made available for local government's affordable housing plans.

'There is no verse in the Quran that says women should cover their faces'

'There is no verse in the Quran that says women should cover their faces'

Dr Taj Hargey says he is advocating for the ban of women wearing burkas in public because they look ridiculous.

[LISTEN] IRR believes list of targeted farms is genuine

[LISTEN] IRR believes list of targeted farms is genuine

Institute for Race Relations researches Terence Corrigan explains why they believe the list Afriforum has released is genuine.

Castro bodyguard shares tales of dictator’s double life and breath-taking wealth

Castro bodyguard shares tales of dictator’s double life and breath-taking wealth

Juan Sanchez shares stories of Fidel Castro that’ll make you re-examine everything you thought you knew about the Cuban dictator.