NONCORE ASSETS
Steinhoff rallies on sale of PSG shares
The Steinhoff share price enjoyed one of its strongest trading days in recent weeks on Monday, when it shot up 10% to R8.50 in early morning trade following news that it was putting 29.5-million of its PSG shares up for sale. At the close of business on Monday, Steinhoff announced it had raised R7.1bn after placing 29.4-million shares at R240 each. The placing price was marginally below PSG’s market price, but analysts said it represented a good price, given the circumstances. "They did very well to get that price, given the premium on which PSG trades, it’s on a p:e of 28 times," said one analyst. Although PSG’s share price eased marginally in early trade after Steinhoff’s announcement, it recovered quickly and closed at R254. Monday’s sale was in addition to 20.6-million PSG shares sold by Steinhoff in early December shortly after it informed the market of accounting irregularities.
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