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
The 50th annual World Economic Forum is about to end. It’s been a weird one

The 50th annual World Economic Forum is about to end. It’s been a weird one

SA missing in action. Trump vs Thunberg. Stakeholder capitalism. A wrap of our coverage of this year’s World Economic Forum.

Your entire economy was highjacked! How many are in prison? – Richard Quest, CNN

Your entire economy was highjacked! How many are in prison? – Richard Quest, CNN

The Money Show’s Bruce Whitfield conducts a shocking interview with CNN’s Richard Quest at the World Economic Forum in Davos.

Positioning your business for success

Positioning your business for success

Positioning your business for success - what does this phrase even mean?

This is how you should invest your money for the next decade

This is how you should invest your money for the next decade

Personal Finance - Tips on how to invest your money.

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
Right to Sight pleads for more donations to conduct cataract surgeries

Right to Sight pleads for more donations to conduct cataract surgeries

Right to Sight trustee Dr Matt Young says they get donations at the most time but now need big sponsors.

Remains of Cato Manor 9 returned on anniversary of their hanging

Remains of Cato Manor 9 returned on anniversary of their hanging

The Cato Manor 9 were hanged in 1961 by the apartheid after taking part in an uprising on 24 January 1960.

Zakes Bantwini opens up about his latest single 'Amanga'

Zakes Bantwini opens up about his latest single 'Amanga'

The musician says he never writes songs about his personal life but this latest single is too personal for him.

Unisa extends registration deadline in the wake of union protests

Unisa extends registration deadline in the wake of union protests

Unisa acting director of communications Lusani Netshitomboni says they encourage students to register online.

Jacques Nienaber confirmed as new Springboks head coach

Jacques Nienaber confirmed as new Springboks head coach

Mzwandile Stick has been reappointed as an assistant coach while in an innovative inclusion, Felix Jones will continue but in a new role as a European-based coaching consultant.

Statistics show decline in mining fatalities

Statistics show decline in mining fatalities

Department of Minerals and Energy chief inspector of mine David Msiza says more needs to be done.

Parliament Speaker says yes to motion to start proceedings to remove PP

Parliament Speaker says yes to motion to start proceedings to remove PP

The fresh calls for Busisiwe Mkhwebane’s removal come after Parliament adopted new rules for the removal of a Public Protector.

 Lesufi suspends Parktown Boys' High principal, trip to lodge 'not authorised'

Lesufi suspends Parktown Boys' High principal, trip to lodge 'not authorised'

Gauteng Education MEC says officials from the department who handled the school's application for the camp are also suspended.

Ruling against EFF defends journalism from defamatory attacks - Anton Harber

Ruling against EFF defends journalism from defamatory attacks - Anton Harber

Wits University Caxton journalism professor and Thandeka Gqubule have won their defamation case against the EFF.

The 50th annual World Economic Forum is about to end. It’s been a weird one

The 50th annual World Economic Forum is about to end. It’s been a weird one

SA missing in action. Trump vs Thunberg. Stakeholder capitalism. A wrap of our coverage of this year’s World Economic Forum.