15225 replies to this topic

[Ms Jet]

Does anyone know how to set a stop loss limit on FNB?? I can set sale limit but you would do this I presume if hoping to sell higher... HELP...Ive just set notification for now...

[Tom]

Think that part of the lock up agreement was that any sale needs to be a fair market. No one will offer fair market as they desperate....maybe better value to turn them into general stores as oppose to just a mattress store. They would've done their homework.

Sent from my SM-G935F using Sharenet Sharechat mobile app

I hope that they have indeed done their homework.

I think the market now needs a more detailed explanation for this deal, and why other restructuring or selling options weren't chosen.

Edited by Tom, 08 October 2018 - 02:16 PM.

[leo]

So why do Steinhoff management think that this MF deal is better than just selling MF off, as I was reading around on the news that they had some good offers to sell MF at a price between 1 to 2 billion dollars.

Think that part of the lock up agreement was that any sale needs to be a fair market. No one will offer fair market as they desperate....maybe better value to turn them into general stores as oppose to just a mattress store. They would've done their homework.

Sent from my SM-G935F using Sharenet Sharechat mobile app

[Tom]

So why do Steinhoff management think that this MF deal is better than just selling MF off, as I was reading around on the news that they had some good offers to sell MF at a price between 1 to 2 billion dollars.

Edited by Tom, 08 October 2018 - 11:51 AM.

[Tom]

The way I read this SNH selling 49.9% of MF for $525 mil. So they value MF at about $1050 mil. That will mean a impairment of $3900-$1050 = $2850 less the cash received $525 mil = $2325 or Euro 2000 mil.

 Quote from page 81 0f the UNAUDITED HALF-YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2018

"Due to the cancellation of a major supply contract and Mattress Firm’s deteriorating profitability,

goodwill of €1.5 billion was impaired for the period ended 30 September 2017. "

 

So looks like they will have to impair another Eur 500 mil which is about Eur 0.12 so the NAV should get to Eur 0.46 or R7.82 

If Steinhoff is not (in return for 49.9% of MF) granted exit from all the MF loans (old and new, which I think will sum up to 1270 million USD), then whatever loans that remain will (I assume) have to be serviced together by the lenders and Steinhoff on a 49.9% : 50.1% basis.

What I'm not cleared about is how much loans MF is granted exit from, and how much will it have to service.

Edited by Tom, 05 October 2018 - 05:43 PM.

[leo]

The way I read this SNH selling 49.9% of MF for $525 mil. So they value MF at about $1050 mil. That will mean a impairment of $3900-$1050 = $2850 less the cash received $525 mil = $2325 or Euro 2000 mil.
Quote from page 81 0f the UNAUDITED HALF-YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2018
"Due to the cancellation of a major supply contract and Mattress Firm’s deteriorating profitability,
goodwill of €1.5 billion was impaired for the period ended 30 September 2017. "

So looks like they will have to impair another Eur 500 mil which is about Eur 0.12 so the NAV should get to Eur 0.46 or R7.82

Very good observation. I would assume all goodwill written off as they filed for bankruptcy, thinks it's a trigger event

Sent from my SM-G935F using Sharenet Sharechat mobile app

[DayTraderDad]

So Steinhoff is giving 49.9% of Mattress Firm to the lender (am I understanding right ?), but what will Steinhoff get in return ?

 

MF possession costed Steinhoff 3800 million USD (they believe they over paid for it by say 15% that will then make the actual price to should be 3230).

Half of MF will be ( 1900 million USD actual cost ) or ( 1615 million USD believed to should have been ).

 

MF is currently indebted by 345 million USD.

And lender will give it further loans of (250+400+125+150)= 925 million USD (I'm not sure which will be payable or never).

The sum of the above debt to be will be ( 1270 ) million USD.

 

Again what will Steinhoff get in return for giving 49.9% of MF to the lenders ?

The way I read this SNH selling 49.9% of MF for $525 mil. So they value MF at about $1050 mil. That will mean a impairment of $3900-$1050 = $2850 less the cash received $525 mil = $2325 or Euro 2000 mil.

 Quote from page 81 0f the UNAUDITED HALF-YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2018

"Due to the cancellation of a major supply contract and Mattress Firm’s deteriorating profitability,

goodwill of €1.5 billion was impaired for the period ended 30 September 2017. "

 

So looks like they will have to impair another Eur 500 mil which is about Eur 0.12 so the NAV should get to Eur 0.46 or R7.82 

[leo]

Well SNH doing its pumping action

Don't see anything lower than 235 next week...imo

Sent from my SM-G935F using Sharenet Sharechat mobile app

[Lionelza1]

Well SNH doing its pumping action

eish

[DayTraderDad]

My take it will drop back to R2.40 then Monday will continue its slow up movement

Well SNH doing its pumping action

[Tom]

So Steinhoff is giving 49.9% of Mattress Firm to the lender (am I understanding right ?), but what will Steinhoff get in return ?

 

MF possession costed Steinhoff 3800 million USD (they believe they over paid for it by say 15% that will then make the actual price to should be 3230).

Half of MF will be ( 1900 million USD actual cost ) or ( 1615 million USD believed to should have been ).

 

MF is currently indebted by 345 million USD.

And lender will give it further loans of (250+400+125+150)= 925 million USD (I'm not sure which will be payable or never).

The sum of the above debt to be will be ( 1270 ) million USD.

 

Again what will Steinhoff get in return for giving 49.9% of MF to the lenders ?

Edited by Tom, 05 October 2018 - 04:36 PM.

[leo]

Tx for the detail JK. Definitely more positive signs.

Ms Jet. Don't think there is a risk of tade being halted. imo

Sent from my SM-G935F using Sharenet Sharechat mobile app

[leo]

Things definitely looking Rosier....Does anyone think SNH could be bust when financials re instated?

To me would seem unlikely as so many creditors put their necks or their backers necks on the line further...

Any comments.....Just wondering anychance in 2019 SNH not trading...or are we thinking that's very unlikely.....Have great weekend all....going for a steak with the MR later....lol

Haha

Sent from my SM-G935F using Sharenet Sharechat mobile app

[JK001]

The company is aiming to reject up to 700 leases and will close an initial batch of about 200 stores in the next few days.

[Ms Jet]

Things definitely looking Rosier....Does anyone think SNH could be bust when financials re instated?

 

To me would seem unlikely as so many creditors put their necks or their backers necks on the line further...

 

Any comments.....Just wondering anychance in 2019 SNH not trading...or are we thinking that's very unlikely.....Have great weekend all....going for a steak with the MR later....lol

[leo]

At least there is vulture Iike commitment by creditors. Interesting equity exit and creditors wanting ownership for long term commitment. This is positive and perhaps may be an indication that restructuring debt will inavertably be succesful in october. This may be good news and would result in share rallying.
Mattress firm restructuring will also result in h1 2019 looking spectacularly better than 2018

Sent from my SM-G950F using Sharenet Sharechat mobile app

It's all pointing to a more positive scenario.

Just mark my words...IMO the longs are going to burn come the 2017 results in Dec...

Sent from my SM-G935F using Sharenet Sharechat mobile app

[JK001]

The company is aiming to reject up to 700 leases and will close an initial batch of about 200 stores in the next few days.

[Lionelza1]

Eish must get another spike

[Investment novice]

At least there is vulture Iike commitment by creditors. Interesting equity exit and creditors wanting ownership for long term commitment. This is positive and perhaps may be an indication that restructuring debt will inavertably be succesful in october. This may be good news and would result in share rallying.
Mattress firm restructuring will also result in h1 2019 looking spectacularly better than 2018

Sent from my SM-G950F using Sharenet Sharechat mobile app

[leo]

My take it will drop back to R2.40 then Monday will continue its slow up movement

That's my thinking

Sent from my SM-G935F using Sharenet Sharechat mobile app