Investors who lost billions of rand when Steinhoff International’s shares collapsed amid one of SA’s worst accounting scandals have very little chance of recouping their losses, according to one of the country’s largest fund managers. Excluding Steinhoff Africa Retail (Star), which is in the process of changing its name to Pepkor as its seeks to distance itself from its scandal-hit parent, the businesses are "heavily loss-making" and "there’s little probability of material upside in the equity once Steinhoff repays its creditors and settles any potential legal claims", Coronation Fund Managers said. In a letter to clients seen by Business Day, Kirshni Totaram, global head of institutional business at Coronation, said the company had sold its "remaining position in Steinhoff", prompted by an adjustment of the investment case to reflect additional information that had come to light since January. The extent of the overstatement of the historical profitability of Steinhoff was far wors...
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