COMPANY COMMENT
Rough day on the market for Pepkor
Pepkor is Steinhoff’s most valuable investment
Pepkor had a rough day on the market on Tuesday following clarification of a rather garbled trading statement released by the company last week. It wasn’t entirely Pepkor’s fault that Friday’s trading statement revealed nothing about how it traded during the six months to end-March. The JSE has very specific regulations about what must be disclosed in a trading update and in an effort to stick within these regulations, Pepkor ended up providing information that was more misleading than instructive. Tuesday’s weakness — down by as much as 4.6% at one stage — followed reports that the actual trading profit for the six months to end-March might have fallen by up to 4% or increased by up to 6.7%. This is at the low end of market expectations and means the share price was on a rather demanding rating. And that’s without considering the huge shadow cast by its controlling shareholder Steinhoff, which holds 71% of Pepkor.The Pepkor stake is without doubt Steinhoff’s most valuable investmen...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.