The Public Investment Corporation (PIC) believes that significant value can be unlocked from Steinhoff Africa Retail (Star), the corporation’s CEO Dan Matjila said on Wednesday. He based his assessment on the possible undervaluation of the current spot share price of Star and the long-term nature of the PIC’s investment horizon. The PIC, as the asset manager for the Government Employees Pension Fund (GEPF), has a major investment in Steinhoff International. According to GEPF figures, the value of the GEPF shareholding in Steinhoff depreciated from R24bn on November 30 to R1.8bn by end-December, rising to R3bn by January 23. Matjila also did not believe the value of Steinhoff was zero as it had some solid underlying assets. A final assessment would, however, depend on the outcome of the forensic investigation. The group’s board of directors would be under pressure to demonstrate their ability and willingness to unlock value within the group.
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