BOARDROOM DRAMA: Markus Jooste, left, who resigned as chief executive of Steinhoff International after nearly 20 years at the helm, and Christo Wiese, the company’s largest shareholder and chairperson. Picture: Reuters

DURBAN - Steinhoff International continued haemorrhaging yesterday, with the share price down 43 percent, despite the company’s attempt to staunch the fall-out.

The share price closed 43.21%  down at R10 yesterday after it bled 61.42 percent on Wednesday and 9 percent on Tuesday.  

The losses suffered by the global retail giant have seen it lose R134 billion in market value in two days, with its market cap ending at R42.31bn yesterday.

The company issued a statement that said it received expressions of interest in certain non-core assets that would release a minimum of €1bn (R15.96bn) of liquidity.

“In addition, the company’s subsidiary Steinhoff Africa Retail (Star) will today formally commit to the refinancing of its long-term liabilities due to the company. It is expected that the

Star refinancing will be concluded on better terms than those applicable to Star’s current liabilities due to Steinhoff, given the strong cash flow inherent in its business,” the group said.

Steinhoff owns a 76.8% stake in Star. 

The group said the additional liquidity of €2bn  expected to be achieved through these measures would strengthen the company’s balance sheet and should provide additional comfort to stakeholders of the company’s ability to be able to fund its existing operations and reduce debt.

Ron Klipin, a senior analyst at Cratos Wealth, said the reports that Steinhoff had received expressions of interest in non-core assets, which would release a minimum of €1bn of liquidity into the company, would help the company to return in the midst of the recent turmoil where its share price had continued to decline in the past three days.

Klipin said a man like Wiese, who had recently purchased significant quantities of Steinhoff shares, would certainly not put himself in the position where he could lose more. 
“Since the turmoil I believe Wiese may have lost about R41bn of personal wealth,” he said.

-BUSINESS REPORT