Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Bond Issue - Steinhoff

Reply
Highlighted
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) ?
0 Kudos
9 REPLIES 9
Highlighted
Valued Contributor
they are convertible into shares which means dilution ..
0 Kudos
Highlighted
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.
0 Kudos
Highlighted
Not applicable
do we still have a 50-60 target? worth a buy at these conditions and price?
0 Kudos
Highlighted
Not applicable
do we still have a 50-60 target? worth a buy at these conditions and price?
0 Kudos
Highlighted
Not applicable
do we still have a 50-60 target? worth a buy at these conditions and price?
0 Kudos
Highlighted
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.
0 Kudos
Highlighted
Super Contributor
Hmmm... Are Steinhoff into construction now as well...I always thought they were into furniture... ???
0 Kudos
Highlighted
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?
0 Kudos
Highlighted
Frequent Contributor
They are in the construction of furniture.
0 Kudos