Fund boss warns on 'Christo Wiese contagion'
Fear that businessman may 'dump' shares in related companies to pay off debt
Businessman Christo Wiese's halo effect may be losing its shine, with a top fund manager calling for him to quit as Shoprite chairman after calling him a "contagion risk". Wiese, who serves as chairman of Africa's biggest grocer and holds about 16% of the retailer's shares, has been at the centre of embattled retail group Steinhoff's accounting scandals, which have seen it lose more than 90% of its value within a matter of weeks. Zwelakhe Mnguni, chief investment officer at Benguela Global Fund managers, which manages about 3% of Shoprite, said "the risk that we see in Shoprite at the moment is the risk of contagion in having Christo Wiese as a controlling shareholder." Mnguni said they were about to initiate a process asking the Shoprite board to request Wiese to resign. "The risk is more from the contagion of having Wiese as chairman and the fact that it would create doubt. "I don't think the whole truth is out yet on Steinhoff and I think when it does come out, people will have v...
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