PREMIUM: Peter Armitage: Steinhoff’s “bolt from the blue” – why we’re selling our shares

LONDON — Investment shocks rarely come bigger than this morning's 60% collapse in the share price of what was the JSE's 5th biggest company, Steinhoff. A R100bn-plus evaporation of value comes on news that long-time CEO Markus Jooste has resigned with immediate effect, and this morning's release of annual financial results has been postponed until further notice. Reason is the emergence of new "accounting irregularities" – and the resulting appointment of auditing firm PwC to check the work of fellow Big Four firm Deloitte, Steinhoff's long-time auditor. Having known Jooste for a couple decades and even served on two directorates together, I've watched the expansion of his vertically integrated furniture with sufficient admiration to include it in the Biznews SA Champions portfolio. Another in the army of Steinhoff supporters was Anchor Capital whose CEO Peter Armitage who is equally astonished at this morning's events. In this interview Armitage, a top rated investment analyst, explains why the share price has tanked and tells us what he'll be doing about his substantial holdings. – Alec Hogg

A warm welcome to Peter Armitage, who joins us from Johannesburg. A shock on the JSE today, with the collapse in the Steinhoff share price. Now, I know you've sent out a note to your clients to tell them your views on exactly what's happening but maybe you could share them with the rest of us.

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