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


Recommended

by NEWSROOM AI
Read More
How to start and grow your own business with funds you find yourself

How to start and grow your own business with funds you find yourself

The Money Show’s Bruce Whitfield interviews Aurik Business Accelerator Pavlo Phitidis.

Did Floyd Shivambu and the EFF benefit from the looting of VBS Mutual Bank?

Did Floyd Shivambu and the EFF benefit from the looting of VBS Mutual Bank?

The Money Show’s Bruce Whitfield interviews Business Day financial journalist Warren Thompson.

What it'll cost to educate your kid abroad (and how much you must save a month)

What it'll cost to educate your kid abroad (and how much you must save a month)

Bruce Whitfield asks Galileo Capital Financial Advisor Warren Ingram about the cost of educating a child overseas.

Game over, Tencent (i.e. Naspers)? No, it remains a profoundly good longterm buy

Game over, Tencent (i.e. Naspers)? No, it remains a profoundly good longterm buy

It’s not the beginning of the end of Tencent, says portfolio manager Francois Strydom, despite it losing R3.2 trillion in value.

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
[LISTEN] Father William MacCurtain apologies to abuse victim William Segodisho

[LISTEN] Father William MacCurtain apologies to abuse victim William Segodisho

Father Paul Nicholson SJ explains how they handled the Segodisho matter from 2002.

Stormy weather expected over parts of South Africa

Stormy weather expected over parts of South Africa

The South African Weather Service is predicting some much-needed rain over some parts of South Africa over the weekend.

'VBS stolen money bought the most useless things like Ferraris and helicopters'

'VBS stolen money bought the most useless things like Ferraris and helicopters'

Deputy editor at Finacial Mail Sikonathi Mantshantsha says it is mind-boggling why no one has been arrested in the VBS saga.

R10 million siphoned from VBS to Floyd Shivambu's personal account

R10 million siphoned from VBS to Floyd Shivambu's personal account

Top ANC officials, along with senior EFF members are among those being fingered in the scandal relating to more than R1 billion being siphoned out of VBS Mutual Bank.

Sunday Times has seven days to confess to state capture role, warns O'Sullivan

Sunday Times has seven days to confess to state capture role, warns O'Sullivan

Private eye Paul O'Sullivan says the Sunday Times was an integral part of state capture and needs to come clean or face a boycott.

[WATCH] Is it a cow's penis or an udder? Well, this kid thinks it's a penis

[WATCH] Is it a cow's penis or an udder? Well, this kid thinks it's a penis

Check out the videos, tweets, Facebook posts that have gone viral and why this kid cheered her dad on in the toilet.

Meet Johann Redelinghuys, a man hell-bent on ending retirement (as we know it)

Meet Johann Redelinghuys, a man hell-bent on ending retirement (as we know it)

“Why try and make retirement more palatable? Why not just abolish it completely?” says headhunter Johann Redelinghuys.