Share

Steinhoff shares plunge by 62% after CEO quits

Johannesburg - Steinhoff International [JSE:SHF] plunged by a record 62% after CEO Markus Jooste quit in the wake of irregularities in the company’s accounts that require further investigation.

Shares in the furniture and clothing retailer fell as low as R17.56 before paring losses to trade 61% lower at R18 as of 09:10 in Johannesburg. That wiped R117bn off the value of the stock to give it a market capitalisation of R76.2bn, according to data compiled by Bloomberg.

The owner of France-based Conforama and Pep in Africa has appointed auditor PwC to probe the matter, it said on Tuesday. South African billionaire and chairperson of the company, Christo Wiese, will run the company on a temporary basis.

The retailer, which has origins in South Africa, has a base in Amsterdam and a primary listing in Frankfurt, said on Monday it wasn’t able to release audited full-year financial results on Wednesday due to matters related to a criminal and tax investigation in Germany.

It had previously rejected allegations of dishonesty made in Manager-Magazin. That report said Jooste is among employees being investigated by German prosecutors in a 2015 case linked to possible accounting fraud.

Steinhoff shares were trading at R20.74 on the JSE shortly after 10:00.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.99
-0.2%
Rand - Pound
24.14
-0.1%
Rand - Euro
20.64
-0.2%
Rand - Aus dollar
12.39
+0.3%
Rand - Yen
0.13
+0.5%
Platinum
913.65
-1.1%
Palladium
1,016.50
-4.6%
Gold
2,158.65
-0.1%
Silver
25.07
+0.1%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders