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Bond Issue - Steinhoff

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Plonky
Super Contributor
Whats' the deal here with the issueing of Bonds.?? The market obviously does not like the news. How does this affect the "uninformed" (like me) ?
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9 REPLIES 9
SimonPB
Valued Contributor
they are convertible into shares which means dilution ..
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Preston
Super Contributor
It also affect their Weighted average Cost of capital. Steinhoff will get the cash inflow from the bonds issue, whilst the principal amount payable in respect of the bond will be paid by issue of treasury shares.
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Not applicable
do we still have a 50-60 target? worth a buy at these conditions and price?
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Not applicable
do we still have a 50-60 target? worth a buy at these conditions and price?
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Not applicable
do we still have a 50-60 target? worth a buy at these conditions and price?
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Jim_Bean
Regular Contributor
Bond issue to secure funding, the construction business needs cash to run, to fund the long lead times between costs being incurred and revenue coming in... indication that they are running out of cash, may follow other companies in the sector! Warning signal of potential problems in the current projects.
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Plonky
Super Contributor
Hmmm... Are Steinhoff into construction now as well...I always thought they were into furniture... ???
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sponono
Super Contributor
if I believe this bond issue will lead to a dilution, why would I now be selling; surely I should be buying in anticipation of this dilution sothat I can maintain my % position?
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jaj
Frequent Contributor
They are in the construction of furniture.
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