South African billionaire Christo Wiese cuts 70% stake in Steinhoff

Christo Wiese, the former chairman of Steinhoff International Holdings NV, has cut his financial stake in the retailer by 70 per cent, a move that may mean one of South Africa’s richest men is no longer the company’s biggest shareholder.

Wiese reduced his shares in Steinhoff, which is dealing with accounting irregularities, to 6.2 per cent from 21 per cent, according to a filing he made to the Netherlands’ Authority for the Financial Markets on Friday.

The Public Investment Corp., which manages state-worker pensions in South Africa, could become Steinhoff’s largest shareholder following Wiese’s action. At a hearing with South African lawmakers on January 31, the PIC sought a review of the company’s voting pool arrangements. The pension manager also wants regulations covering large personal shareholdings, according to Chief Executive Officer Dan Matjila.

Furniture retailer Steinhoff has been under pressure since it announced on December 5 that it had uncovered accounting irregularities. The company will have to restate its earnings statements for at least fiscal 2017, 2016 and 2015. Shares in Steinhoff crashed 80 per cent in the two days following the announcement.