Is Invicta similar to Steinhoff?
Investors dumped its stock this week after it made provision for a large tax liability
Industrial conglomerate Invicta Holdings — which has beleaguered investment tycoon Christo Wiese as a 38% shareholder — is determined to distance itself from the Steinhoff International debacle.Wiese was a large shareholder in Steinhoff at the time of the retail giant’s calamitous share price collapse following the admission of accounting irregularities.Last Friday Invicta hiked its provision for a tax liability by R400m to R550m. This is linked to complicated financial structures that were created at the time of an empowerment deal 10 years ago.The development smacked down Invicta’s share price to a new 12-month low on Monday.It also appeared to reinforce contentions that Invicta and Steinhoff were startlingly similar. Market watchers cited the existence of complicated financial structures and a low tax rate at both companies, as well as a knack for acquiring companies at low earnings multiples and quickly turning these into big profit spinners.Aside from Wiese being a common share...
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.