This is my view:
Presently shares in issue 4200 mil and after the agreement total shares would be 21000. If by 2026 for every Eur 1 bil the NAV per share will be Eur 0,048 or R 0,88. Taking that both PEPCO and PEPKOR are growing fast I will see by then at least Eur 2 bil NAV. Thew alternative was nothing so for me this is a ghood deal that will just take more time to realize good profits. That why many people are buying at the low price.
Thanks DTD
Yes, I fully agree with your view, it is very sound and good:
Reading the comments on losses to be incurred or that have already been incurred on this share drop , I always think of Warren Buffet's advice:
"When everyone sell, you buy"
I see this as an opportunity of a lifetime to make more money, especially if you are already invested on a very low average. I am in a situation now to buy even more and exit on any big spike.
Moreover, there will be may speculators who will be driving this price up and down but with any good news from Steinhoff there could be spikes. If you in low, try to bring your average down even more and exit, at least on breakeven or a profit. This is my philosophy....If you have not sold yet you have not lost yet.
Don't get a shock on Monday 19/12 when this share opens between 20c and 30c on the JSE because that was about where it closed in Frankfurt on Friday.
BUT:
When will the creditor's resolutions be adopted? Will this be at the first shareholders meeting? This 80%/20% swop,
and is this a PRE-CONDITION OF THE EXISTING CREDIT FACILITIES' CONTINUATION?. This does not come out clearly or maybe I did not see it.
Then: Somewhere I saw in the creditors agreement that the proposals are also like "future type of arrangements or proposals" which might not be cast in stone meaning that some of the elements of the agreement could well change in future?
Does this mean that some of the preconditions on extending the credit extension could well change, viz creditors no longer require 80% of the ordinary shares.
There is a saying in Afrikaans: "Papier is geduldig" meaning things can change. Can that vagueness in the document also allude to a more positive outcome for the ordinary shareholders by 2026 or 2028, when Steinhoff's performance improve and they are able to service more debt .
The scenario I am thinking about is: Can another big creditor step into the fray offering less draconian conditions for credit extension? Is this option open?
Your DTD and other views will be appreciated
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