STELLENBOSCH MAFIA
How Wiese ignored the signs
Stories emerge of how Jooste and his men browbeat critics and earned Steinhoff its reputation as a bully
Craig Butters, a soft-spoken and lanky runner who, in his day job, co-manages Prudential’s Dividend Maximiser and Core Value funds, has red-flagged numerous problems with companies run by brawny alpha male CEOs over his 20 years in the industry. There was Specialised Outsourcing, where he clashed with Dave King, and a nasty scrap with Verimark’s Mike van Straaten. But easily the most formidable battle he picked was with Steinhoff. Butters’ story is important, contradicting the view that no-one in the investment industry raised concerns about Steinhoff. "By about 2006, based on my analysis I was convinced Steinhoff’s great success story was not all it appeared to be. Their legacy assets, which they’d bought, were largely rubbish, and in some cases had been acquisitions of struggling clients. And they’d kept desperately issuing shares and raising debt to do these deals."At the time, Butters saw how Markus Jooste’s sales pitch diverted radically from Steinhoff’s tangible net asset valu...
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.