Third time lucky for Wiese?
Christo Wiese’s big gamble
The tycoon is trying again to consolidate his retail interests in a deal that may prejudice Shoprite minority shareholders
Like it or not — and Christo Wiese seems not to — stories abound of the lengths to which he will go to save a few rand. So it should be no surprise that analysts’ response to Wiese’s latest attempt to consolidate his retail interests has largely been a resigned shrug, as they await details of a deal expected to prejudice Shoprite minority shareholders. Earlier this year, when Wiese’s second attempt to restructure his retail interests collapsed, Steinhoff shares were trading at R69 and analysts forecast that they would gain 19% within a year. Shoprite was trading at R188 and analysts tagged its shares to hit just more than R200 within the year.Five months later, as the market tries to digest the broad-brush outline of Wiese’s third attempt to consolidate his retail interests, the Steinhoff share price is looking very soggy, while the prospect of a tie-up with Steinhoff seems to take the wind out of the Shoprite share price. The Steinhoff share price has spent much of the past five mo...
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