Steinhoff scandal pulverises shares
STEINHOFF International gives its shareholders a Christmas present they will never forget when it admits to accounting malpractices, dating back to December 2015, that send its share prices tumbling to their lowest-ever recorded level and sheds R190 billion in market capitalisation. The stock falls from R55.50 to R6 in one week of turmoil that sees Markus Jooste resigning his position as chief executive. (Jooste’s net worth is estimated at R5.8bn).
Steinhoff ’s board tries to limit the damage by appointing Christo Wiese as executive chairperson and also contacts PwC to perform an independent investigation. While the share price has rebounded slightly, it is still far from its days of glory as the retailer has yet to publish its audited results for the year to September. – Sandile Mchunu