We saw a major drop of 44% with Steinhoff to just 90cents and Its market capitalisation lost as much as R3bn in the fall from R6.9b yesterday
Steinhoff is in troubled waters with a debt of R185 billion.
There is a deal where if Shareholders will agree, they will end up owning 20% of the company.
The Creditors will own the rest.
The problem is the company will no longer be listed on the stock exchange.
From my experience when a company goes from listed to private it means a few things. 1. Liquidity issues Volume will be low where you might not be able to exit a position with a rightful buyer or sell
2. lack of transparency This leads to uncertainty for the business as shares holders won't have the transparent information like they would with a public company.
3. Valuation With a company listed privately, this can lead to investors pricing in the business rather than shareholders. This can result in slower performance in the price of the share.
4. Market perception The fact that a company has been delisted can be seen as a negative development by some investors, who may view it as a sign of financial distress or poor management. This can affect the market's perception of the company and its shares, which can in turn affect the value of your investment.
I would not touch Steinhoff with even my pocket money for sweets at this stage.
Yeah ... looks bad, see come interpret that the 20% will only kick in after 2026 if debt isn't repaid, which means they have 3 years to try and salvage before that worst case scenario kicks in ... but not sure if the interpretation is even as good as that.
B33KaY-ZN
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100x off the bounce
ChrisBez
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Buy - this is not Blood on the streets it a slaughter - @ 0.04c it’s a no brainer!