Invicta tax liabilities a new blow for Christo Wiese
The conglomerate's trading update pencils in an 81% drop in headline earnings, a potential blow for the tycoon who holds a 37.5% stake
In another blow for investment tycoon Christo Wiese, industrial supplies conglomerate Invicta Holdings — in which he is the biggest shareholder — issued a shock update on Friday highlighting potentially costly tax liabilities. Wiese’s fortunes have been battered over the past 18 months by accounting scandals at retailer Steinhoff International. He holds a 37.5% stake in Invicta, worth about R1.65bn. The update, issued after the market closed on Friday, pencilled in an 81% drop in headline earnings from continuing operations to 90c a share (last year it was 466c a share). Invicta’s earnings crunch was caused by the raising of a large additional tax provision of R400m on financial structures dating to its empowerment arrangement under Humulani Investments about a decade ago. The market marked down Invicta’s shares by about 25% over the past three months. But the tax provision caused a stir among investors. Invicta releases its results on Monday and there should be a push at its invest...
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