'Shoprite averted a possible disaster after a failed merger with embattled Steinhoff in 2017'
Mnguni’s comments come as experts take stock of the long-running Steinhoff drama following Markus Jooste’s suicide.
Customers shopping at Shoprite. Image: Abigail Javier/EWN
JOHANNESBURG - Chief Investment Officer at Benguela Fund Managers, Zwelakhe Mnguni , said supermarket chain Shoprite averted a possible disaster after a failed merger with embattled Steinhoff in 2017.
Mnguni’s comments come as experts take stock of the long-running Steinhoff drama following Markus Jooste’s suicide.
The former CEO was labelled as the mastermind in a con that brought the multinational retailer to its knees in 2017.
The merger between the African chains Shoprite and Steinhoff was reportedly the idea of retail tycoon Christo Wiese.
He had a stake in both businesses, with plans to expand them into a superchain on the continent.
But shareholders at Shoprite did't buy into the merger, putting it on ice.
Soon after, reports of widespread fraud at Steinhoff emerged.
Some of Steinhoff’s top executives were implicated, including Jooste, former head of legal Stephan Grobler and CFO Ben la Grange.
Mnguni said the deal could have dragged Shoprite through the mud.
The fund manager was among those opposed to the acquistion deal.
"Shoprite would have been taken by the creditors, just like Pep and other assets were taken by creditors. People often joke that Christo owes me lunch."
Though Wiese’s fortune took a knock due to the Steinhoff exposure, the Shoprite group was saved a lot of trouble.