Steinhoff preference dividend sends stock soaring
Greater clarity on write-downs and an extension from creditors are also factors in the 39% surge
Embattled retailer Steinhoff’s share price rallied nearly 50% on the JSE on Tuesday as investor sentiment was buoyed by the declaration of a preference dividend, further reprieve from creditors, and some clarity emerged around the extent to which the value of assets will be written down. The stock closed 39% up at R1.80 and is up 51% since unaudited interim results for the six months to end-March were released on Friday. It remains a far cry from the R56-odd level before accounting irregularities came to light in December, prompting the resignation of former CEO Markus Jooste in what has turned into one of SA’s biggest corporate scandals. The recent run in the share price was attributable to three things, said Petri Redelinghuys, a trader and the founder of Herenya Capital Advisors. “First, the board declared a preference dividend, which shows they have sufficient liquidity to feel comfortable to pay that; second, there is more clarity about the extent of the write-downs; and third,...
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