7 votes
The Oracle
Posted 07 August 2019 - 12:37 PM
Hi Captain,
Yes recall very well and looks like its on track. I also think Greenlit going the same way.
My only concern is the debt remains with SNH but 49% of MF has gone for nothing and the same for Conforama.
The assets are getting less but debt not reducing as fast.
Lets see how the final restructure will look like.
Edited by DayTraderDad, 07 August 2019 - 12:41 PM.
Advanced Member
Posted 07 August 2019 - 12:12 PM
My question is how will SNH pay the debt if Pep SA is listed they cannot get cash from there only dividends and now listing Pep Eu the same scenario where will the cash come from to service and pay down the debt?
DTD, you may recall that I first wrote of this IPO very early this year.
Their strategy is to list the company through an IPO. A prospectus will be issued and the general public will be offered the chance to subscribe for the remaining available shares (after the institutional investors (and possibly the creditors) have been allotted their share. People will have to pay for this shares (along with the Institutional investors). There may be a debt for equity settlement for the creditors.
I believe that the creditors ownership may have a limited defined period with Steinhoff having the right but not an obligation to buy back this ownership after 5 years.
So there is will cash coming in. In fact, the IPO may be over-subscribed, which will be a wonderful thing for Steinhoff as they will then have a new Share Premium Reserve. They would need to bear in mind many listing requirements like free float of shares, minimum number of shareholders, etc. But these are minor matters.
Best Regards
Captainfrom82
Master
Posted 07 August 2019 - 12:02 PM
My question is how will SNH pay the debt if Pep SA is listed they cannot get cash from there only dividends and now listing Pep Eu the same scenario where will the cash come from to service and pay down the debt?
Yes true, however every company needs some debt and I think for Steinhoff currently 5 billion debt should be sustainable in the long term. Given 5% interest that would mean roughly around 250 million interest expense. 5% is a high interest rates. I think once normalised we could see interest rates between 2 and 3 %.
To maintain this and to service debt a good dividend from Pepkor SA and EU would be enough to pay for these costs and to have something left for shareholders as dividend in future years. Meaning from 2022 2023.
The Oracle
Posted 07 August 2019 - 12:00 PM
By the 20-08-2019 Pepco will have 1706 stores open.
The Oracle
Posted 07 August 2019 - 11:40 AM
Interesting article:
https://www.deraktio...obox=1565170184
Highlights:
"Meanwhile, the suit suit against Steinhoff assumes form. In the court case against the company, a special senate at the Higher Regional Court (OLG) Frankfurt determined the model claimant by a decision of 30 July. The procedure is officially opened and will begin on December 18th.
The Oracle
Posted 07 August 2019 - 11:13 AM
Yes interesting indeed, the big question will be how much cash can they generate from this? I think a range between 1 and 2 Billion for a 30% share is reasonable given the growth opportunities of pepkor europe.
I think we are in for a hell of a surprise at the investor day. I think they will have a detailed plan which they will present showing exactly how they want to reduce the debt levels.
So currently we have the following:
Around 10 billion debt less 2,3 Billion cash. Gives us around 7,8 net debt. Now taking in Uni trans value (I think around 300 Million), Then IPO of Pepkor europe lets say 1.5 billion. We have 6 billion net debt. Refinance these 6 Billion at terms around 3-4 % p.a. Steinhoff will be profitable in near future again.
Just my thoughts. Any other ideas?
My question is how will SNH pay the debt if Pep SA is listed they cannot get cash from there only dividends and now listing Pep Eu the same scenario where will the cash come from to service and pay down the debt?
Master
Posted 07 August 2019 - 11:09 AM
Very, very interesting...
Massive Capital Reduction for Pepkor Europe - They have reduced the share premium by E 394,788,665 (ZAR 6,066,253,525) and credited this to the Profit and Loss Reserve.
Ja, things are definitely on the move!
Personally, I would have waited and tried to tie up/settle the upside potential of the litigant shareholders while the zero equity is the legal position of Steinhoff, before restructuring this side of the bus
Yes interesting indeed, the big question will be how much cash can they generate from this? I think a range between 1 and 2 Billion for a 30% share is reasonable given the growth opportunities of pepkor europe.
I think we are in for a hell of a surprise at the investor day. I think they will have a detailed plan which they will present showing exactly how they want to reduce the debt levels.
So currently we have the following:
Around 10 billion debt less 2,3 Billion cash. Gives us around 7,8 net debt. Now taking in Uni trans value (I think around 300 Million), Then IPO of Pepkor europe lets say 1.5 billion. We have 6 billion net debt. Refinance these 6 Billion at terms around 3-4 % p.a. Steinhoff will be profitable in near future again.
Just my thoughts. Any other ideas?
Advanced Member
Posted 07 August 2019 - 11:02 AM
Its the best alternative, easy way to get in 1 to 2 billion equity with no dilution for current shareholders if they list 30%. I'm sure they will keep more then 50%.
Or they can now declare dividends and pay off to the shareholders given the fact that they have transferred Share Premium Reserve to the Profit & Loss reserve...
Advanced Member
Posted 07 August 2019 - 10:53 AM
Some indication
...https://beta.compani.../filing-history
Very, very interesting...
Massive Capital Reduction for Pepkor Europe - They have reduced the share premium by E 394,788,665 (ZAR 6,066,253,525) and credited this to the Profit and Loss Reserve.
Ja, things are definitely on the move!
Personally, I would have waited and tried to tie up/settle the upside potential of the litigant shareholders while the zero equity is the legal position of Steinhoff, before restructuring this side of the business.
The Oracle
Posted 07 August 2019 - 10:17 AM
Two days to go for deadline and four days to Investor presentation surely there must be big new anytime now!!!
Master
Posted 07 August 2019 - 09:59 AM
Hammered in Germany... Debt for equity was always on the cards....
Sent from my SM-G950F using Sharenet Sharechat mobile app
Its the best alternative, easy way to get in 1 to 2 billion equity with no dilution for current shareholders if they list 30%. I'm sure they will keep more then 50%.
Member
The Oracle
Posted 06 August 2019 - 08:13 PM
The Oracle
Posted 06 August 2019 - 05:14 PM
Weird, how would you do this with litigation liability.
Delisting, cleanup, relishing may have been an option.
Would an ipo indicate that litigation liability would be ringfenced to snh shareholding of the listed entity???
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Litigation liability going to take a long time I think there is also going to be a IPO of Greenlit Brands
The Oracle
Posted 06 August 2019 - 05:06 PM
Member
Advanced Member
Posted 06 August 2019 - 04:52 PM
Reported on Bloomberg:
Steinhoff Is Said to Consider IPO of Pepco, Poundland Owner
Maybe this is causing some uncertainty as recent movement doesn’t make sense. Or as you guys said, market expecting another extension
Member
Posted 06 August 2019 - 04:50 PM
Reported on Bloomberg:
Steinhoff Is Said to Consider IPO of Pepco, Poundland Owner
Maybe this is causing some uncertainty as recent movement doesn’t make sense. Or as you guys said, market expecting another extension
Member
Posted 06 August 2019 - 04:36 PM
The Oracle
Posted 06 August 2019 - 04:20 PM
