Christo Wiese

Last updated

Christo Wiese
Born
Christoffel Hendrik Wiese

(1941-09-10) 10 September 1941 (age 83)
Upington, Cape Province
Union of South Africa
Education Paarl Boys' High School
Alma mater Stellenbosch University
Spouse
Caro Wiese
​
(m. 1975)​
Children3, including Jacob
Relatives Japie Basson (father-in-law)

Christoffel Hendrik Wiese (born 10 September 1941) is a South African billionaire businessman who was the longtime chairman of Shoprite and Pepkor. He was also the chairman and largest shareholder of Steinhoff International until its collapse in December 2017.

Contents

Trained as a lawyer, Wiese entered discount consumer retail in 1981 when he acquired a controlling interest in Pep Stores from a family member. Though he is no longer the majority shareholder in Shoprite or Pep, he retains significant interests in both companies, as well as in mining and real estate.

Early life and education

Wiese was born on 10 September 1941 in Upington, South Africa, where his father owned a sheep and cattle farm and a car dealership. [1] [2] He matriculated at Paarl Boys' High School and initially enrolled at the University of Cape Town but dropped out without completing his programme. [1] After a hiatus in Upington, where he started a radiator repair business, he resumed his studies at Stellenbosch University and graduated in 1967 with a Bachelor of Arts and Bachelor of Laws. [2] [1] On the Stellenbosch campus he lived at Wilgenhof. [3]

Business career

While Wiese was at Stellenbosch, his parents co-founded Pep Stores in Upington in 1965. [4] After his graduation, Wiese spent several years working as an executive director for the family business during a period of rapid expansion. [2] In 1974, however, he moved to Cape Town, where he married and worked at the Cape Bar with a practice in criminal and commercial law. [2] [1] He remained involved in business, buying a diamond mine in Richtersveld in 1976, and he ran unsuccessfully for election to Parliament in 1977, standing as a candidate for the opposition Progressive Federal Party in the Simonstown constituency. [2] [5] In 1981, he sold the Richtersveld mine and bought his cousin out of Pep Stores, which had acquired Shoprite for R1 million in 1979 and which by then had 450 locations nationwide; Wiese acquired a controlling 44-per-cent stake in Pep Stores and became its chairman. [6] [2] [1]

Pep (renamed Pepkor Limited in 1982) [6] was tremendously successful in the discount retail market over the next two decades, buoyed in part by the de facto protectionism produced by international sanctions against the apartheid government. [2] Wiese later described the company as "the Wal-Mart of Africa," saying, "The business has basically been built on one slogan: Low prices you can trust." [2] In 1986, Pepkor acquired the clothing chain Ackermans and spun out Pepkor's food interests, listing Shoprite Holdings Limited separately on the JSE alongside the clothing interests of PEP Limited; Wiese maintained control of both public companies. [6] [7] [1] In 1991 Pepkor acquired Smart Group Holdings, Cashbuild, Checkers, and Stuttafords. [6] Pepkor also purchased the loss-making OK Bazaars from South African Breweries for one rand in 1997. [8]

British investments

Weise's private equity company, Brait, holds several investments in British companies, beginning with a 2012 investment in Iceland Foods. [2] In April 2015, Brait bought 80 per cent of Virgin Active from Richard Branson's Virgin Group, [9] and it bought 90 per cent of New Look later the same year. [10] Wiese told press that he had looked abroad because antitrust policy restricted his further expansion in the South African retail market. [7]

Steinhoff scandal

In March 2012, Wiese became a shareholder and director of German-listed Steinhoff International as part of the sale of his five-star vineyard hotel, the Lanzerac Manor and Winery, which he had owned since 1991. The deal, reported in the media as a sale to a foreign consortium, [11] was spearheaded by Steinhoff executive Markus Jooste, who was Wiese's personal friend. [12] Two years later, in November 2014, Steinhoff acquired 92.34 per cent of Pepkor, buying Wiese's 52.47 per cent stake and Brait's 37.06 per cent stake. [13] In exchange Weise acquired 19.7 per cent of Steinhoff, [14] and in 2016 he became chairman of Steinhoff after buying further shares to finance its acquisition of Mattress Firm. By the end of the 2016 financial year, he was the largest single shareholder of both Steinhoff (23 per cent) and Shoprite (16.9 per cent), and he publicly supported proposals to merge the companies' interests. [15]

Wiese was Steinhoff chairman in December 2017 when Steinhoff admitted to massive accounting fraud, resulting in Jooste's resignation as chief executive. [16] Wiese initially took over as acting chief executive, but a week later he announced that he would step down from the board entirely. [17] [18] [19] His net worth reportedly fell by over $3 billion in subsequent weeks as Steinhoff's share price plummeted. [20] Four large international lenders – Goldman Sachs, JP Morgan, Citigroup, and Bank of America – also reported large losses on written-down margin loans to Wiese, [21] though the loans were ringfenced around his Steinhoff shares. [7] Summoned to the South African Parliament to answer questions about the scandal, Wiese testified that revelations of the fraud had been like "a bolt from the blue." [22] Jooste later claimed that Wiese had in fact had earlier notice of the fraud. [23]

In April 2018, Weise's company, Titan, sued to cancel R59 billion in Steinhoff share purchases, which he alleged were the result of fraud; [24] the case settled in early 2022, with Wiese receiving R3 billion in cash and a per cent stake in Pepkor valued at over R4 billion. [25] Absent from the Forbes Billionaire List since 2018, Wiese regained dollar-billionaire status in 2023. [7]

Shoprite leadership

In the aftermath of the Steinhoff collapse, Wiese reduced his holdings in Shoprite by about a third; by October 2019, he held 10.7 per cent of the company, a smaller share than the Government Employees Pension Fund, though he retained control of the board through deferred shares with special voting rights. [26] The company remained highly profitable. [27]

In November 2019, Wiese used his special voting rights to gain reappointment as Shoprite chairman, notwithstanding the opposition of shareholders who controlled over 60 per cent of ordinary shares, [28] but he stepped down as chairman in November 2020, replaced by Wendy Lucas-Bull. [29] He remained chairman of Invicta Holdings and TradeHold, [30] and in 2024 he told press that he was focusing on his mining interests in Trans Hex Group Limited. [31]

Financial controversies

In April 2009, the United Kingdom Border Agency confiscated some £675 000 (about R7.2 million) from Wiese at London City Airport, where Wiese was carrying £120 000 in his hand luggage and £554 920 in his checked baggage on a flight to Luxembourg. The City of Westminster Magistrates' Court approved a forfeiture order under the Proceeds of Crime Act, finding that the cash was associated with criminal conduct. [32] [33] Wiese said that he had earned the money in diamond deals in the 1980s and 1990s and had stored it in a safety deposit box at the Ritz Hotel in order to avoid South African exchange controls. [34] Represented by Clare Montgomery, Wiese won an appeal in the London High Court in 2012 and reclaimed the money. [35]

Meanwhile, the City Airport controversy reportedly spurred an investigation by the South African Revenue Service (SARS), resulting in 2012 in a finding that one of Wiese's companies, Titan, owed up to R2 billion in taxes in South Africa. [36] [37] The dispute went to the Supreme Court of Appeal in 2024. [38]

Personal life

Wiese's wife, Caro, is an art collector and the daughter of prominent politician Japie Basson. [39] They have three children. [5] Resident in Clifton, Cape Town, they also own the Lourensford Wine Estate in Somerset West, purchased in 1998, [5] and a private wildlife reserve in the Kalahari desert. [31]

See also

Related Research Articles

<span class="mw-page-title-main">Stellenbosch University</span> University in Western Cape, South Africa

Stellenbosch University (SU) is a public research university situated in Stellenbosch, a town in the Western Cape province of South Africa. Stellenbosch is the oldest university in South Africa and the oldest extant university in Sub-Saharan Africa, which received full university status in 1918. Stellenbosch University designed and manufactured Africa's first microsatellite, SUNSAT, launched in 1999.

<span class="mw-page-title-main">Patrice Motsepe</span> South African businessman (born 1962)

Patrice Tlhopane Motsepe is a South African billionaire businessman and football administrator. Since March 2021, he has been president of the Confederation of African Football. He is the founder and executive chairman of African Rainbow Minerals, which has interests in gold, ferrous metals, base metals, and platinum. He sits on several company boards, including being the non-executive chairman of Harmony Gold, the world's 12th largest gold mining company, and the deputy chairman of Sanlam. He serves on the Board of Trustees of the World Economic Forum.

<span class="mw-page-title-main">Adi Godrej</span> Indian businessman

Adi Burjorji Godrej is an Indian billionaire businessman and head of the Godrej family, chairman of the Godrej Group. As of August 2024, he has a net worth of US$3.8 billion.

The following lists events that happened during 1941 in South Africa.

Solomon Lew is an Australian businessman. His principal commercial activities involve importing apparel, toys and other goods into Australia from China and investments, mainly in retail companies.

<span class="mw-page-title-main">Johann Rupert</span> South African entrepreneur (born 1950)

Johann Peter Rupert is a South African billionaire businessman, who is the eldest son of business tycoon Anton Rupert and his wife Huberte. He is the chairman of the Swiss-based luxury-goods company Richemont and the South Africa-based company Remgro. Since April 2010, he has been the CEO of Compagnie Financiere Richemont. Rupert and family were ranked the second richest in South Africa; behind Elon Musk; on the 2024 Forbes list, with an estimated net worth of US$12.0 billion and US$14.5 billion according to Bloomberg Billionaires Index.

Arena Holdings, formerly known as Tiso Blackstar Group, Johnnic Communications, Avusa and the Times Media Group, is a South African media company based in Johannesburg, South Africa. It publishes several major South African newspapers, including the Sunday Times, Business Day, Financial Mail, Herald, Sowetan and Daily Dispatch. It acquired its current name in 2019 when it was acquired by Lebashe Investment Group, the current owner of the company.

Olufemi Peter Otedola is a Nigerian businessman and philanthropist. He is the former chairman of Forte Oil PLC, and is the current executive chairman of Geregu Power PLC.

<span class="mw-page-title-main">Pep (store)</span> Retail store chain established in 1965 in South Africa

PEP is a multinational retail company based in Cape Town, South Africa. Founded in 1965, PEP operated in 11 countries in Southern Africa with the opening of an outlet in Lobito, Angola in November 2008. As of November 2009, the company reported over 1400 stores in operation, with total employment equalling 14,000 employees. It also owns and runs the largest clothing factory in southern Africa, where it manufactures much of its clothing.

<span class="mw-page-title-main">Leonid Mikhelson</span> Russian billionaire businessman

Leonid Viktorovich Mikhelson is a Russian-Israeli billionaire businessman, CEO, chairman and major shareholder of the Russian gas company Novatek.

Pepkor is a South African-based investment and holding company focused on the discount and value consumer retail and fintech markets. The majority of operations are in South Africa, and operations extend to other African countries and Brazil. It manages retail brands, selling predominantly clothing, footwear, and homeware products, in addition to household furniture, appliances, consumer electronics, and building materials.

<span class="mw-page-title-main">Steinhoff International</span> South African-based international retail holding company

Steinhoff International was a multinational holding company that was dual listed in Germany and South Africa. It was officially liquidated on 13 October 2023. Its holdings were in the retail sector, primarily in furniture and household goods, and included a 43,8% stake in South Africa's Pepkor group. The company operated in Europe, Africa, Asia, the United States, Australia, and New Zealand. It was well known for an accounting scandal which led to criminal charges against its former chief executive, Markus Jooste.

Markus Johannes Jooste was a South African businessman and the CEO of Steinhoff International. He was an avid horse breeder, and in 2016 was reported to be one of Africa's richest people, worth $400 million. Joining forces with Christo Wiese in 2014, they embarked on an aggressive international expansion programme. The share price of their conglomerate reached a peak in March 2016, favouring their strategy of paying for dividends and acquisitions by sales of stock.

Jasper van der Westhuizen Wiese is a South African professional rugby union player who plays for Urayasu D-Rocks in Japan's Rugby League One and South Africa internationally. He can play as a number 8 or a flanker.

Bruno Ewald Steinhoff is a German billionaire businessman, the founder of Steinhoff International, a South African-based international retail holding company, and its executive chairman until September 2008. He is now a non-executive director, and a member of the supervisory board.

James Wellwood "Whitey" Basson is a South African businessman and billionaire who was largely responsible for growing a small business called Shoprite from an 8-store chain valued at R1 million into an international retail conglomerate with revenue in 2019 of R150 billion, market capitalisation of R114 billion, more than 2 300 stores and 140 000 employees across 15 African countries. Deloitte's Global Powers of Retailing 2019 ranked The Shoprite Group as the 86th largest retailer in the world.

<span class="mw-page-title-main">Shoprite Holdings Ltd</span> South African supermarket chain

Shoprite Holdings Ltd (Shoprite) is Africa’s largest supermarket retailer. The company's headquarters are in Brackenfell in the Western Cape province of South Africa. Shoprite is a public company listed on the Johannesburg Stock Exchange and A2X Markets in South Africa, with secondary listings on both the Namibian and Lusaka stock exchanges. The Shoprite Group employs more than 160,000 people and is the largest private sector employer in South Africa. By 2024, Shoprite had 3,031 stores in 10 countries.

Michiel Scholtz du Pré le Roux is a South African billionaire businessman and philanthropist who co-founded Capitec Bank. He was the bank's inaugural chief executive officer from 2001 to 2004 and later served as its chairman from 2007 to 2016. One of South Africa's richest men, he is also a major donor to the Democratic Alliance.

Martin Moshal is a South African businessman and philanthropist who is known for his involvement in the online gambling and venture capital industries. He cofounded Microgaming and Entrée Capital. He is also a major political donor to opposition parties in South Africa.

References

  1. 1 2 3 4 5 6 Minnaar, Kirsten (15 July 2024). "South African billionaire who nearly lost it all – and then rebuilt his wealth". Daily Investor. Retrieved 18 December 2024.
  2. 1 2 3 4 5 6 7 8 9 Brown, Abram (1 March 2016). "The Billionaire African Behind The Continent's Greatest Retail Empire". Forbes. Retrieved 18 December 2024.
  3. ↑ Brederode, William (2 February 2024). "No Mr Wiese, decency is not the first rule of Wilgenhof". News24. Retrieved 18 December 2024.
  4. ↑ Fisher, Ryland (22 April 2013). "Daily Maverick interview: Christo Wiese". Daily Maverick. Retrieved 18 December 2024.
  5. 1 2 3 Smith, David (6 June 2015). "Christo Wiese: South Africa's modest fashion billionaire comes to Britain". The Observer. ISSN   0029-7712 . Retrieved 18 December 2024.
  6. 1 2 3 4 Nsehe, Mfonobong (24 July 2012). "Meet South African Billionaire Christo Wiese, Mr. Shoprite". Forbes. Retrieved 8 January 2015.
  7. 1 2 3 4 Dolan, Kerry A. (30 January 2023). "How South Africa's Christo Wiese Sued His Way Back Into The Billionaire Ranks". Forbes. Retrieved 18 December 2024.
  8. ↑ "History". Shoprite. Archived from the original on 19 September 2008. Retrieved 25 April 2008.
  9. ↑ Kollewe, Julia (16 April 2015). "Virgin Active stake sold to South Africa's Brait for £682m". The Guardian. ISSN   0261-3077 . Retrieved 18 December 2024.
  10. ↑ Farrell, Sean (15 May 2015). "New Look snapped up by South African tycoon". The Guardian. ISSN   0261-3077 . Retrieved 18 December 2024.
  11. ↑ "Wiese sells Lanzerac to foreigners". News24. 7 March 2012. Retrieved 18 December 2024.
  12. ↑ "Life after Jooste, Christo Wiese opens up". BizNews.com. 7 November 2021. Retrieved 18 December 2024.
  13. ↑ "Steinhoff moves into clothes with R62.8bn Pepkor buy". News24. 25 November 2014. Retrieved 18 December 2024.
  14. ↑ Rose, Rob (30 November 2014). "How the Pepkor deal went down". Business Day. Retrieved 18 December 2024.
  15. ↑ "'We can bring all these brands to the party': South African billionaire Christo Wiese reshuffles his empire". The Africa Report.com. 11 December 2017. Retrieved 18 December 2024.
  16. ↑ Rose, Rob (21 March 2024). "Steinheist: The day the fraud became clear". Daily Maverick. Retrieved 18 December 2024.
  17. ↑ Cheetham, Joshua; Palumbo, Daniele (19 December 2017). "Steinhoff investors decide fate of firm". BBC News. Retrieved 19 December 2017.
  18. ↑ Pfanner, Eric (14 December 2017). "Christo Wiese quits board as Steinhoff scandal deepens". News24. Retrieved 18 December 2024.
  19. ↑ Wexler, Alexandra (14 December 2017). "Steinhoff's Interim Chief Resigns Amid Accounting Probe". Wall Street Journal. ISSN   0099-9660 . Retrieved 18 December 2024.
  20. ↑ McCrum, Dan; Cotterill, Joseph; Vandevelde, Mark (8 April 2018). "How Steinhoff's European war ended in the defeat of Christo Wiese". Financial Times. Retrieved 18 December 2024.
  21. ↑ "Focus shifts to Steinhoff's ex-chair Christo Wiese". The Mail & Guardian. 26 January 2018. Retrieved 18 December 2024.
  22. ↑ Cronje, Jan (1 February 2018). "Steinhoff goes to Parliament: 5 key takeaways". Business. Retrieved 18 December 2024.
  23. ↑ Merten, Marianne (5 September 2018). "Lawyered up Markus Jooste blames Christo Wiese, ex-partner Seifert, and many others (El Niño and Trump safe, for now)". Daily Maverick. Retrieved 18 December 2024.
  24. ↑ "Steinhoff's largest shareholder sues to claw back $4.7bn". Financial Times. 26 April 2018. Retrieved 18 December 2024.
  25. ↑ "Christo Wiese receives R7 billion payout from Steinhoff – much less than he lost". News24. 17 February 2022. Retrieved 18 December 2024.
  26. ↑ "Christo Wiese no longer largest Shoprite shareholder". Business Day. 6 October 2019. Archived from the original on 29 September 2020. Retrieved 18 December 2024.
  27. ↑ "Shoprite profits a ray of light to Wiese after $2bn Steinhoff loss". The Mail & Guardian. 28 February 2018. Retrieved 18 December 2024.
  28. ↑ Nsehe, Mfonobong (17 November 2019). "Former Billionaire Christo Wiese To Step Down From Shoprite Next Year". Forbes. Retrieved 18 December 2024.
  29. ↑ Buthelezi, Londiwe (1 October 2020). "Christo Wiese steps down as Shoprite chairperson after 41 years". News24. Retrieved 18 December 2024.
  30. ↑ "All the companies billionaire Christo Wiese owns". Daily Investor. 14 March 2023. Retrieved 18 December 2024.
  31. 1 2 Sun, Namibian (28 February 2024). "Christo Wiese returns to diamond-hunting roots". Namibian Sun. Retrieved 18 December 2024.
  32. ↑ "Wiese to appeal court decision to keep his millions". The Mail & Guardian. 6 December 2010. Retrieved 18 December 2024.
  33. ↑ "Shoprite chairperson Wiese forfeits seized UK money". The Mail & Guardian. 3 December 2010. Retrieved 18 December 2024.
  34. ↑ O'Connor, Clare (27 June 2012). "This Is What Happens When A Billionaire Tries To Get On A Plane With $1 Million Cash In His Luggage". Forbes. Retrieved 9 July 2017.
  35. ↑ "Mr Moneybags shrugs off the load". The Mail & Guardian. 13 July 2012. Retrieved 18 December 2024.
  36. ↑ "Wiese and Sars are in for a long battle". The Mail & Guardian. 17 August 2012. Retrieved 18 December 2024.
  37. ↑ "South Africa's third wealthiest man owes the taxman $250 million". MINING.COM. 12 August 2012. Retrieved 18 December 2024.
  38. ↑ "SCA judgment against Christo Wiese highlights Sars' powers". Business Day. 15 July 2024. Archived from the original on 6 August 2024. Retrieved 18 December 2024.
  39. ↑ "A Woman of Substance". Strauss & Co. 2 November 2015. Retrieved 18 December 2024.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.