15225 replies to this topic

[Squideye]

Bruce Whitfield talks to CEO Leon Lourens about Pepkor's acquisition in Latin America @ https://omny.fm/show...ith-brazilian-v

 

Today at 18:11. Pepkor expands into Latin America with Brazilian value retail group. The Money Show with Bruce Whitfield Guests Leon Lourens - CEO at Pepkor @ https://www.702.co.z...bruce-whitfield

[DayTraderDad]

Sjoe, but you are working hard at this.

 

Strong Company = Pepco and Pepkor - but give a little more time.

 

Do not miss the train this time!

Haha thanks will not miss the train will get back in at the appropriate price.

[DayTraderDad]

if I understand the "against" argument it is all about the inability to re-pay the debt....at the current 10%or so.

Their 3rd pillar is to restructure the debt by whenever....that I am unclear of..I think Ldp said by June or July 2022.

 

So I am assuming the process is to negotiate the % down

Does anyone have any theory on what kind of % this debt will be re-negotiated at..i.e. what is the typical % in the countries where the debt is held?

If for example they get a 3% (because in Europe the % is low)....does that change the picture at all?

Indeed would be great to hear the views of the people how they see the debt restructure, what would be the holding left in Pepco and Pepkor supported by figure not just words!! 

[Africa1962]

Remember the day when asset managers said they wouldnt touch Sasol with anyones **** let alone their own. Now look at it , its the best stock on the JSE with some okes having made a 10 bagger. let time work and dont forget to say your prayers.

if I understand the "against" argument it is all about the inability to re-pay the debt....at the current 10%or so.

Their 3rd pillar is to restructure the debt by whenever....that I am unclear of..I think Ldp said by June or July 2022.

 

So I am assuming the process is to negotiate the % down

Does anyone have any theory on what kind of % this debt will be re-negotiated at..i.e. what is the typical % in the countries where the debt is held?

If for example they get a 3% (because in Europe the % is low)....does that change the picture at all?

[DeltaHedge]

Sjoe, but you are working hard at this.

 

Strong Company = Pepco and Pepkor - but give a little more time.

 

Do not miss the train this time!

Remember the day when asset managers said they wouldnt touch Sasol with anyones **** let alone their own. Now look at it , its the best stock on the JSE with some okes having made a 10 bagger. let time work and dont forget to say your prayers.

[Bubble]

Yes that is true but then  TdK interviews he is very clear holdings will be diluted and especially Pepco he talked on " selling chunks of 10 to 15% holding" with no minimum holding to pay debt down. ( I would believe the CFO with finacial background  more than the CEO with legal background). I think LdP was talking present and TdK was talking future.

 

He also said Debt Equity swap also not feasible due to dilution but my take they would have to issue the shares at a big discount in which case they would not have enough shares to issue.

 

Don't forget they sold 20% of Pepco to simply pay off one year of interest ( because the debt was very little changed after deducting the Eur 1 bil ) and now they will have to pay further 2 years (if they restructure the debt only by 2023) which that alone will consume another 40% of Pepco shares.

 

People are forgetting that since the financials of 30 Sept 2021 SNH interest charged up to 30 March 2022 will be close to Eur 500 mil that equates the amount they got cash from MF dividends.

 

So with that in view where will there be the strong big company??

 

It would be different if they were in a position of Ascendis that alter exchanging equity for debt they still have R200 m in cash and no debt. The debt mountain is to big for the assets of SNH and very sure creditors wil not forgive all the interest.

 

Sjoe, but you are working hard at this.

 

Strong Company = Pepco and Pepkor - but give a little more time.

 

Do not miss the train this time!

[DayTraderDad]

but at the same time, Loius uPreez stated in his press conference that "management can now focus on making Steinhoff a strong holding company again".....so i really don't know which way the strategy will focus

Yes that is true but then  TdK interviews he is very clear holdings will be diluted and especially Pepco he talked on " selling chunks of 10 to 15% holding" with no minimum holding to pay debt down. ( I would believe the CFO with finacial background  more than the CEO with legal background). I think LdP was talking present and TdK was talking future.

 

He also said Debt Equity swap also not feasible due to dilution but my take they would have to issue the shares at a big discount in which case they would not have enough shares to issue.

 

Don't forget they sold 20% of Pepco to simply pay off one year of interest ( because the debt was very little changed after deducting the Eur 1 bil ) and now they will have to pay further 2 years (if they restructure the debt only by 2023) which that alone will consume another 40% of Pepco shares.

 

People are forgetting that since the financials of 30 Sept 2021 SNH interest charged up to 30 March 2022 will be close to Eur 500 mil that equates the amount they got cash from MF dividends.

 

So with that in view where will there be the strong big company??

 

It would be different if they were in a position of Ascendis that alter exchanging equity for debt they still have R200 m in cash and no debt. The debt mountain is to big for the assets of SNH and very sure creditors wil not forgive all the interest.

[DayTraderDad]

Do not miss the train this time!

Haha will not my trucks are all parked on the R2 loading station!!!

[Africa1962]

Very good thought and I also think exactly the same that's why all claimant took PPH shares and not SNH.

 

For me due to the debt mountain and the Eur 1bil interest per year SNH is no longer a viable holding company to be listed ( due to costing, debt and low cash flow) because from what I am now hearing on the presentation looks like Avenida is a business full of debt and needing considerable cash injection so might be that in time PPH will not pay dividends in which case it would reduce SNH income.

 

My take is PEPCO will be given to creditor together with MF, FF and a big chuck of PPH and depending what is the secret deal with PIC SNH should land up with 5% to 10% of PPH ( provided Bond Holders are willing to take a haircut) which then can distribute at a rate between 1 to 10 and 20. That's how I arrive at my price target of between R1 to R2.

 

Time for green beer!!! 

 

but at the same time, Loius uPreez stated in his press conference that "management can now focus on making Steinhoff a strong holding company again".....so i really don't know which way the strategy will focus

[DeltaHedge]

Very good thought and I also think exactly the same that's why all claimant took PPH shares and not SNH.

 

For me due to the debt mountain and the Eur 1bil interest per year SNH is no longer a viable holding company to be listed ( due to costing, debt and low cash flow) because from what I am now hearing on the presentation looks like Avenida is a business full of debt and needing considerable cash injection so might be that in time PPH will not pay dividends in which case it would reduce SNH income.

 

My take is PEPCO will be given to creditor together with MF, FF and a big chuck of PPH and depending what is the secret deal with PIC SNH should land up with 5% to 10% of PPH ( provided Bond Holders are willing to take a haircut) which then can distribute at a rate between 1 to 10 and 20. That's how I arrive at my price target of between R1 to R2.

 

Time for green beer!!! 

Do not miss the train this time!

[DayTraderDad]

 

"The deal, which followed a two-year due diligence process, is expected to be concluded on Friday."

  I guess Pieter E., as ex director, kept his fingers on the pulse...

 

Haha he must have told the TT guys!!

[Squideye]

Yes now I know why Trevo went for the call option of 120 mil shares of PPH which SNH giving away at R24!!! 

"The deal, which followed a two-year due diligence process, is expected to be concluded on Friday."

  I guess Pieter E., as ex director, kept his fingers on the pulse...

Edited by Squideye, 03 February 2022 - 12:14 PM.

[DayTraderDad]

Here is my science fiction theory...based on no fact whatsoever!

 

SNH will be utilised to sell off all the assets to reduce debt as far as possible then will be wound up, while Pekor continues to take over the world in the low end apparel markets growing share value hopefully.

SNH shareholders will be offered a 1 to 10 (ish) pep share and then Pep will become the new international holding company without the baggage of the Steinhoff name.

Very good thought and I also think exactly the same that's why all claimant took PPH shares and not SNH.

 

For me due to the debt mountain and the Eur 1bil interest per year SNH is no longer a viable holding company to be listed ( due to costing, debt and low cash flow) because from what I am now hearing on the presentation looks like Avenida is a business full of debt and needing considerable cash injection so might be that in time PPH will not pay dividends in which case it would reduce SNH income.

 

My take is PEPCO will be given to creditor together with MF, FF and a big chuck of PPH and depending what is the secret deal with PIC SNH should land up with 5% to 10% of PPH ( provided Bond Holders are willing to take a haircut) which then can distribute at a rate between 1 to 10 and 20. That's how I arrive at my price target of between R1 to R2.

 

Time for green beer!!! 

[Africa1962]

Indeed but no money value discussed just lots of great ideas!!! 

Here is my science fiction theory...based on no fact whatsoever!

 

SNH will be utilised to sell off all the assets to reduce debt as far as possible then will be wound up, while Pekor continues to take over the world in the low end apparel markets growing share value hopefully.

SNH shareholders will be offered a 1 to 10 (ish) pep share and then Pep will become the new international holding company without the baggage of the Steinhoff name.

[Squideye]

Today at 18:11. Pepkor expands into Latin America with Brazilian value retail group. The Money Show with Bruce Whitfield Guests Leon Lourens - CEO at Pepkor @ https://www.702.co.z...bruce-whitfield

[DayTraderDad]

this is a

 

 difficult one to gauge...

.who knows what tricks are still up their sleeve....like this pepkor thing

methinks the price will stay around current levels (or slow puncture) until the debt is re-negotiated

or

until the next project is announced

As said in the presentation no dividends the next three years from Avenida only cash injection into Avenida from PPH, so how much value it is to SNH debt payment by 2023???

[DayTraderDad]

Probably biggest positive impact to be seen at holding level hence SNH up

Indeed but no money value discussed just lots of great ideas!!! 

[Africa1962]

this is a

 

All the weak, small balled can kindly sell their shares now please, and take whatever profits they want.

We have now stabilised people. This share won’t be some sort of rocket moon gen Z nonsense everyone keeps praying for.

 difficult one to gauge...

.who knows what tricks are still up their sleeve....like this pepkor thing

methinks the price will stay around current levels (or slow puncture) until the debt is re-negotiated

or

until the next project is announced

[DayTraderDad]

All the weak, small balled can kindly sell their shares now please, and take whatever profits they want.

We have now stabilised people. This share won’t be some sort of rocket moon gen Z nonsense everyone keeps praying for.

Yes now I know why Trevo went for the call option of 120 mil shares of PPH which SNH giving away at R24!!! 

[new john]

All the weak, small balled can kindly sell their shares now please, and take whatever profits they want.

We have now stabilised people. This share won’t be some sort of rocket moon gen Z nonsense everyone keeps praying for.