Days after he resigned as Chairman of Steinhoff International Holdings, Christo Wiese has sold more of his shares in food retailer Shoprite Holdings to R3.3 billion ($259 million).
This move followed a recent accounting scandal which reduced the company’s image in a matter of days.
Wiese is the Shoprite’s biggest shareholder and his liquidation of assets comes as Steinhoff’s stock extended its drop this month to 93%, fueled by the resignation of chief executive officer Markus Jooste after auditors refused to sign-off on the furniture and clothing company’s 2017 earnings, Bloomberg reports.
The retail conglomerate Steinhoff now risks dropping off the list of the top 100 biggest JSE companies by market capitalisation.
The company run from South Africa but has its main stock listing in Germany, faces a potential fire sale of its global retail holdings as it battles for survival. Wiese, the chairman of Shoprite, sold R1.1 billion of the grocer’s shares on Tuesday, according to a statement, following the sale of stock worth R2.2 billion in the last week.
Steinhoff promised it will update the market as the aforesaid investigation proceeds. The Company will publish the audited 2017 consolidated financial statements when it is in a position to do so. In addition, the Company will determine whether any prior years’ financial statements will need to be restated.