Acting CFO to run Steinhoff

Share price climbs to R8.69

STEINHOFF International started the year on a positive note, despite the group facing new challenges towards the end of the week with the resignation of its chief financial officer (CFO) Ben la Grange.

La Grange’s resignation follows that of long serving chief executive Markus Jooste, who stepped down in December, after the group admitted to accounting irregularities dating back to December 2015.

The stock has been up by 82.95% for the week, after it opened at R4.75 a share on the JSE on Monday. By midday on Friday Steinhoff ’s share price had climbed to R8.69. The stock continued to remain bullish on Friday, hitting a week high of R9.57 in the morning, despite the company announcing a sudden departure of Ben la Grange.

The group said La Grange stepped down from his role to take up a new role in the company.

“The current CFO, Ben la Grange has today stepped down as CFO and as a member of the management board to focus on the preservation and procurement of liquidity in the group, in addition to the finalisation of the company’s audited 2017 con- solidated financial statements and comparative statements,” the group said.

The group was quick to announce his successor in the form of Philip Dieperink in an acting CFO capacity role pending formal appointment to the management board of the company.

“Philip has been with the group in various CFO positions since 2001, and will remain as the CFO of Steinhoff UK.

The nomination of Philip Dieperink will be submitted to the general meeting of the company for appointment in due course,” the group said.

Steinhoff is still trying to recover after having lost more than $10 billion in market capitalisation after the scandal.

In December Ben la Grange also resigned from his position as chief executive of Steinhoff Africa Retail (STAR).

The group said that he resigned from the STAR board in order to focus solely on his role as chief financial officer of the parent company.

Steinhoff indicated earlier this week that it might be forced to restate its figures as far as back to 2015.

It has yet to release its financial results for the year to end of September as investigations continue. The group approached PwC to perform an independent investigation in December.

In an effort to return some liquidity into its balance sheet, Steinhoff sold a portion of its stake in the PSG Group for $400 million.

It is expecting to receive $1.2 billion from STAR as a debt repayment.

Other recent changes in the group include that of Christo Wiese, who had been appointed as an interim executive chairman, but also stepped down in December. The group’s supervisory board accepted his resignation “to address any possible conflict of interest that may exist,” Steinhoff said.

Steinhoff also hired US investment bank Moelis & Company and AlixPartners with immediate effect in December in a bid to reassure investors that it was serious about stabilising its business.

‘Philip has been

2001’