NEWS ANALYSIS: How Steinhoff’s African listing has been overshadowed by its European woes
A German investigation into alleged accounting fraud by senior managers at Steinhoff’s European operations couldn’t have come at a worse time for its top shareholder Christo Wiese. The retail magnate is about to split Steinhoff’s African businesses so investors can better judge the value of its faster-growing ones in the US, Europe and Australia. He thinks doing so will improve returns for shareholders. But as he forges ahead with the separation next month, news of the fraud probe on Thursday wiped more than $2bn off the value of Steinhoff’s shares, which are listed in Germany and Johannesburg and were valued at $20bn on Friday. "It’s very bad timing for Steinhoff. You obviously don’t want to go into a listing with something like that hanging over your head. It’s a distraction and shareholders might start getting a bit grumpy," said Tota Tsotsotso, Managing Director at Bataung Capital in Johannesburg. Wiese, who owns nearly 22% of Steinhoff’s shares, said a report on the investigati...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.