15225 replies to this topic

[Tom]

Reached +24% on Trade Gate and Frankfurt exchanges compared to last day closing.

Edited by Tom, 03 July 2020 - 07:29 PM.

[Lionelza1]

What's happening?

[Tom]

+19% up on Frankfurt.

[Tom]

+23.5% up on Trade Gate, and +12% up on Frankfurt.

Edited by Tom, 03 July 2020 - 06:55 PM.

[AnbanM]

+19% up on Trade Gate.

share is taking off....feel a bit of an ooaf...liquidated my holdings to buy Ascendis...

[Tom]

+19% up on Trade Gate.

Edited by Tom, 03 July 2020 - 06:40 PM.

[Investment novice]

Steinhoff likely near to settling R188 billion in legal claims



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[Tom]

+12,73% up on Trade Gate.

Edited by Tom, 03 July 2020 - 06:07 PM.

[Tom]

2020 Half-year results ========================= Friday 31 July 2020 2020

Annual general meeting  ======================= Friday 28 August 2020

Q3 Trading update – quarter ended 30 June 2020 ==== Friday, 28 August 2020

Edited by Tom, 03 July 2020 - 05:50 PM.

[Tom]

Price going up on Frankfurt exchange and Trade Gate exchange.

[Tom]

Given that a class action  against Steinhoff was dismissed by the South African court a few days ago, so I think this can apply to all court cases against Steinhoff by all ex-share holders (including Wiese and old TT owner) in south Africa, and I think Steinhoff should open a legal cost compensation cases against them.

 

I don't think Steinhoff should settle with Wiese or old TT owner, but actually claim their legal expenses back from them, and open a reckless and negligence cases against them because they were part of the old management.

 

I think Steinhoff should only settle with the Netherlands and Germany class actions on 3% paid on installments.

Edited by Tom, 03 July 2020 - 04:17 PM.

[andi222]

Thanks for the article. Sounds like they are in advance stages of a settlement agreement.

 

So normally a settlement value should lie at around 5 to 10% of the total claim. I think everyone around the table knows they will never in their lives see the full claim value. 

 

Lets assume they settle for 10% on a global settlement. This would mean around 1 billion €. 

 

Now giving Pepkor a reasonable value of (EBITDA of 500 Mil € at a Multiple of 12 we get to 6 billion €). Surprisingly 18% of this 6 billion € amounts to roughly 1 Billion €.

 

I think Steinhoff does want to retain 50.1% ownership. So they will offer the claimants the 18%. Either they take the Pepkor shares or they get cash.

 

I think this is the absolute maximum Steinhoff will be able to settle without liquidating the whole group.

 

 

[Burnt as well]

(Bloomberg) --Steinhoff International Holdings NV is getting close to reaching a potential deal on 10 billion euros ($11 billion) of legal claims lodged against the global retailer following an accounting scandal that almost wiped out the company, according to two people with knowledge of the matter.
South African claimants -- including former chairman Christo Wiese whose suit amounts to 59 billion rand ($3.5 billion) -- have been offered a combination of cash and shares in Pepkor Holdings Ltd., one of the people said. It isn’t immediately clear how much a settlement could amount to, the people said, asking not to be identified because talks are continuing and a deal may not be reached. Steinhoff owns 68% of Pepkor, Africa’s largest clothing retailer.

“I’m hopeful it will be soon,” Wiese said by phone, without being more specific on the timing of a potential settlement or the offer. The 78-year-old has the biggest single claim against Steinhoff after becoming its largest shareholder when he sold Pepkor to the firm in 2015. “I wanted to get around the table and do a settlement as soon as we could, and now it’s dragged on for three years.”

The longer talks take, the more legal fees stack up, Steinhoff Chief Financial Officer Theodore de Klerk said in an interview. He declined to comment on when a settlement could be reached or details of an offer.

[Tom]

Steinhoff now should concentrate on lowering the CVA very high interest rate (10%), by refinancing their CVA debt, rather than trying to sell their performing assets.

Especially during the lock downs, Steinhoff shouldn't concentrate on selling assets, especially that their remaining assets are performing very well, and the prices now for most business property is generally lower than before, while Steinhoff should concentrate on finding lower interest rate debts given that the interest rates now (about 3% or 2%) are much less than before, also the availability of governments interest free stimulus packages (Steinhoff need to keep applying and discussing with governments).

Edited by Tom, 03 July 2020 - 09:16 AM.

[Tom]

This story doesn't make sense:

 

https://www.moneyweb...old-grim-stuff/

 

 

I think it would make more sense that Conservatorium/Upington open a case against Wiese himself, not against part of his court claim.

 

While Steinhoff should open a case against Wiese, who was a major cause to share price collapse, and to equity loss because of him supporting Mattress Firm disastrous deal, and reckless and negligence in not chairing the company properly which allowed the shenanigans, and actually being himself part to some shenanigans or doing some non arms length deals.

 

Steinhoff should open a case against Wiese, not the just defend his case against Steinhoff, especially that the last South African court ruling a few day ago has made it clear that share holders (including ex-shareholders) cannot claim for losses, and only Steinhoff can claim for losses according the the South African law (Wiese (and old TT owner) was a share holder, no matter how they got their shares).

 

Stienhoff should also open a case against Deloitte, in addition to the existing claw back cases against ex-managers.

 

As for the class actions in The Netherlands and Germany the law could be different, but the ruling will take years from now, and the compensation if ruled won't be much (about 10% and can be aid in installments).

 

Steinhoff has a very good chance in recovering damage from the third parties, and about 300 million Euros advisory fees, should be claimed from the third parties as part of Steinhoff damage, in addition to claw backs and other damages.

[Tom]

https://www.moneyweb...old-grim-stuff/

Edited by Tom, 03 July 2020 - 09:00 AM.

[Investment novice]

Wiese... Not worse.. Sorry

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[Investment novice]

Lots of steinhoff bashing... But none picking up strongly on the groundwork that has been done. I would live to see a single discussion on the worse legal position... This is soon to be thrown out. He has as much to be liable for as the director and chairman. If anything his negative sentiment in itself has resulted. In the share value collapse...
Be great to see a steinhoff counter suit against him....well I think his suit will end soon.... Carona is coming for him.... It's the great equalizer......

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[DayTraderDad]

More false and misleading publicity:

 

https://af.reuters.c...KBN2425AK-OZABS "Steinhoff faces legal claims of more than $10 billion": Even though 2 days ago the South African court ruled that ex-shareholders cannot sue for losses.

 

https://www.biznews....f-advisory-fees "Steinhoff advisory fees soar as accounting scandal lingers": Even though those (advisory 158 million euros) fees aren't any major expense for a big company like Steinhoff, and only once off.

 

https://www.business...to-remain-high/ "Steinhoff expects advisory fees to fall in 2020, but legal fees to remain high": Legal fees aren't the straw that can break Steinhoff's back.

Thanks Tom very interesting. Thats why I have stopped buying news papers dont trust news people.

[vishalsur]

Interesting views all around

 

Media gets paid for publishing rubbish as long as it sells....nothing new

I like where this story is going and i think it's worth a punt at current levels

 

We shouldn't forget that this company has over 100 000 employees that are blameless 

and helping to rebuilt what a few bad eggs have tried to destroyed overnight 

 

Keep the updates coming:) 

Enjoying everyone's input