Steinhoff scandal wipes out $12 bn of shareholder value

Shocked Steinhoff shareholders have wiped more than $12 billion off its value since it revealed "accounting irregularities" and parted ways with its chief executive, in a dramatic fall from grace for the South African retailer.

Once a must-have for investors who backed its reinvention as a retail empire including brands such as Mattress Firm and Poundland under veteran CEO Markus Jooste, Steinhoff shares fell by 43 percent on Thursday, compounding the previous day's more than 60 percent fall.

This collapse leaves South African tycoon Christo Wiese, Steinhoff biggest shareholder and chairman, seriously out of pocket, eroding more about $2.8 billion of his net worth.

It also prompted an urgent call by South Africa's Finance Minister Malusi Gigaba for pension fund managers to report back on their exposures to the sudden sell-off, saying that the accounting issue was a "grave concern".

South Africa's Public Investment Corporation (PIC), the retailer's second-largest shareholder, said the allegations against Steinhoff were "serious concerns".

The PIC, which manages civil servants' pension funds, said in a statement it holds around 10 percent of Steinhoff's stock.
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