Steinhoff’s share price declines due partly to foreign acquisitions
Steinhoff’s corporate activity unnerves European and local investors, and Christo Wiese’s proposed deal makes matters ‘more complicated’
Steinhoff’s share price fell more than 1% in late afternoon trade on Wednesday on a day when most consumer goods and industrial companies were higher. This brings the integrated retailer’s losses to about 23.69% for the past six months. Cratos Wealth senior analyst Ron Klipin said there were numerous reasons why Steinhoff’s share price was on the decline from about R94 six months ago to the current level of R68. "First, there has been a proliferation of acquisitions in the US and in the UK, namely the Mattress Firm and Poundland. In addition, they were wise enough to walk away from other deals due to price and other considerations," said Klipin. "All of this corporate activity unnerved investors both in Europe, where Steinhoff has its primary listing, and in Johannesburg where it has a secondary listing."
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