Pepkor difficult to price in shadow of Steinhoff
General goods retailer remains a difficult company to value despite putting out solid numbers for the three months to December
General goods retailer Pepkor, formerly known as Steinhoff Africa Retail, on Monday released solid numbers for the three months ended December despite challenging trading conditions. Pepkor, which has troubled retailer Steinhoff International as a 71% shareholder, reported sales growth of 6.1% for the quarter. But given its connection to scandal-plagued Steinhoff, the market was still struggling to figure out how much it was worth, said Sasfin Bank senior equity analyst Alec Abraham. Abraham said though Pepkor’s latest sales numbers were reasonable, its connection to “Steinhoff still loomed over it”. Figuring out what it is worth was not easy because investors could easily end up paying too much or too little, depending on the findings of the investigation into the group, he said. When the problems at Steinhoff came to light over a year ago, Pepkor’s share price collapsed from R25.40 to a low of R15.11 in a matter of days. It has since recovered to R20.10, giving it a market cap of ...
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