Prof Jannie Rossouw’s open letter to Steinhoff directors: do the right thing
In the interest of preserving what little value remains, Steinhoff’s board should resign and a new board should be appointed to mend relations with lenders
I write this open letter in my capacity as a shareholder in Steinhoff. Most of you do not know me and will probably never meet me. I am only a small shareholder when compared with the other companies, pension funds, trusts and individuals invested in the company. I hold my shares through my interest in pension funds, unit trusts, the Satrix 40 and some shares directly in my own name. Given the media coverage, I assume you are aware of the company’s recent history. Suffice to say Steinhoff has shed R200bn (about 85%) of its market capitalisation in the six weeks since CEO Markus Jooste resigned on December 6 amid undisclosed "accounting irregularities". Any other board appointed as a replacement cannot do worse. Given the 85% diminishment of the market capitalisation, there is only 15% of value left for any new board to destroy. And, anyway, a new board will instil more investor confidence in the governance and oversight of the company than the current board has done. In my view, the...
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