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


702 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 702 community a safe and welcoming space for all.

702 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.

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

Read More
Sibanye-Stillwater to buy Lonmin

Sibanye-Stillwater to buy Lonmin

The Money Show’s Bruce Whitfield interviews Sibanye-Stillwater Chief Executive Officer Neal Froneman.

Fund manager lays criminal charges against former Steinhoff CEO Markus Jooste

Fund manager lays criminal charges against former Steinhoff CEO Markus Jooste

The Money Show’s Bruce Whitfield interviews Benguela Global Fund Managers Chief Investment Officer Zwelakhe Mnguni.

Trends that’ll dominate the business environment in 2018

Trends that’ll dominate the business environment in 2018

It’s time to start thinking about how to keep your business relevant next year, says small business guru Pavlo Phitidis.

What you must learn from the Steinhoff and EOH share price collapses

What you must learn from the Steinhoff and EOH share price collapses

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

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
'ANC may split if Dlamini-Zuma is elected leader'

'ANC may split if Dlamini-Zuma is elected leader'

Political analyst Dr Somadoda Fikeni sat down with Ray White to discuss the future of the ANC.

The Steinhoff Story: from humble beginnings to billions

The Steinhoff Story: from humble beginnings to billions

Financial Mail editor Rob Rose chats to Eusebius McKaiser about how Steinhoff became the retail giant we know, before the fall.

Predictably awesome new Nando's ad reminds South Africans ‘we can fix our sh$t’

Predictably awesome new Nando's ad reminds South Africans ‘we can fix our sh$t’

Watch the Guptas pack their bags and run in Nando's inspiring new advertisement.

PSG Chair Jannie Mouton opens up (kind of) about Steinhoff

PSG Chair Jannie Mouton opens up (kind of) about Steinhoff

In 2012 Steinhoff acquired 20% of wealth manager PSG, reportedly infuriating Mouton. Bruce Whitfield interviews him.

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.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...