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Steinhoff shares nosedive after CEO Markus Jooste resigns

The Johannesburg Stock Exchange. File picture: Siphiwe Sibeko

The Johannesburg Stock Exchange. File picture: Siphiwe Sibeko

Published Dec 6, 2017

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JOHANNESBURG - Steinhoff''s share price crashed 61% to R17.56 shortly after the JSE opened at 9am from Tuesday's R45.65 closing price.

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In Frankfurt, Steinhoff similarly crashed 52% to €1.42.

Star's share price fell 29% to R17.55 on Wednesday morning following the announcement of Jooste's departure.

Former manufacturing arm of Steinhoff Industrial, KAP's share price fell 14% to R7.45.

The group’s share price has fallen 18.2% from Friday’s closing price of R55.81 to R45.65 on Tuesday after warning shareholders on Monday its results would not be signed by its current auditors.

This came after Steinhoff International CEO Marcus Jooste announced his resignation on Tuesday night, causing an indefinite delay in the release of Steinhoff Holding's full-year results, which were scheduled for release on Wednesday.

The group on Tuesday said that its results for the year to end-September would be released “when it is in a position to do so”.

Jooste, who had been with Steinhoff since 1988, has previously been credited with growing the Steinhoff Holding's into Europe's second-largest player, through a series of acquisitions of home retail furniture chains.

Steinhoff previously rebuffed claims made in a report by German magazine, Manager-Magazin, of its former CEO, Markus Joost being amongst employees investigated by German prosecutors in a 2015 accounting fraud case.

Chairperson of Steinhoff Holdings International, Christo Wiese will step in as interim CEO after Jooste's resignation.

Jooste's resignation comes on the back of company reporting discrepancies in its accounts and a recently launched inquiry by Price Waterhouse Coopers .


- BUSINESS REPORT ONLINE

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