Investors sniff out Steinhoff salvage value
Investors appear to believe there is salvage value in the company
The Steinhoff share price enjoyed one of its strongest days in months on Tuesday as investors seemed to take comfort from the March 2018 interim figures. Despite €12.8bn being wiped off the balance sheet and the previous interim’s hefty operating profit converted to a loss, investors appear to believe there is salvage value in the company.The members of Steinhoff’s supervisory and management boards cannot be accused of encouraging optimism. That Steinhoff even qualifies as a going concern requires assuming that the litigation piling up against it will be drawn out over years. This is probably a reasonable assumption given the slow pace at which legal battles proceed and does speak to the R5m or so "professional fees" the company paid out every day between December 2017 and end-March 2018. Included in the 90-page interim report are the curious details of a PSG derivative contract. It seems some "select" investors with PSG shares were "encouraged" to swap them for Steinhoff shares in ...
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