EDITORIAL: Viceroy’s influence on Nepi’s share price fall inordinate
Nearly a year after it sent shock waves on the JSE by exposing heavyweight counter Steinhoff for financial irregularities, but having lost credibility when it failed to pin down Capitec Bank, short seller Viceroy Research causes R9bn damage to Nepi Rockcastle’s market value
Viceroy Research reports have obviously lost some of the potency they had when the previously obscure outfit burst into the public consciousness in the wake of the disclosure of “accounting irregularities” at Steinhoff International. That might explain why Nepi Rockcastle shares have managed to recover most of the losses suffered on Wednesday, when it became the latest South African target of the short-sellers. Steinhoff will probably go down as one of the biggest acts of corporate fraud in SA’s history, having cost shareholders around R200bn due to the subsequent collapse in market value. That’s before you take into account the forced sale of perfectly good assets to keep creditors at bay and the parent company afloat. A misconception developed in 2017 that the famous, or infamous, Viceroy note in December was the catalyst that caused the Steinhoff share collapse, when it came after the scandal had already broken. Viceroy’s reputation suffered after it accused Capitec, one of the s...
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.