Community

Share knowledge. Find answers. Ask questions.

Online Share Trading

Engage and learn about markets and trading online

Market reaction on sens

Reply
Super Contributor

Market reaction on sens

I am lost in this reaction to the sens.Anybody care to clarify?
0 Kudos
27 REPLIES
Valued Contributor

Re:Market reaction on sens

market seems to think they sold way to cheap, could've done better with a listing of pepkor
0 Kudos
Not applicable

Re:Market reaction on sens

They still have to get shareholder approval. Who on earth would vote for a deal like this?
0 Kudos
Highlighted
mosismoke
Contributor

Re:Market reaction on sens

How is that for good management: Sell the cash cow; get your bonus and smile whilst shareholders are bleeding. Pls vote against this nonsense
0 Kudos
Not applicable

Re:Market reaction on sens

this deal is absolute rubbish. Pepkor is valued by Brait at R11bn - they are selling for R15bn and roughly 2% stake in Steinhof (R12bn, more or less). So, R26bn in total. Firstly, Pepkor is ridiculously undervalued by Brait. They use a 8 times EBIDTA multiple. Compare this to mr Price - which works on a 22 times EBITDA multiple at the moment. Secondly, they are selling a controlling interest, in a quality operation, in exchange for an insignificant stake in a company they have no control over, whatsoever. The only reason I ever bought Brait, was because of Pepkor's potential and the pace at which they were expanding in Eastern European markets. Boo to this deal - but like I said, it still has to get shareholder approval. But Christo Wiese is not a fool, he wouldn't have launched this if he didn't have the political backing here
0 Kudos
Regular Contributor

Re:Market reaction on sens

But this also seems to be a deal brokered by PSG without shareholder consensus. A little like the book build in SHF at R52 - the primary aim been to list on the DAX. I think these Stellenbosch blokes are just doing what the hell they like and enriching themselves. When will the JSE look into this?????
0 Kudos
Super Contributor

Re:Market reaction on sens

Good riddance to the SA Inc. asset. Move on to bigger, better - abroad.
0 Kudos
stefanb
Contributor

Re:Market reaction on sens

JoosteÂ…..MoutonÂ…..WieseÂ…hhmmmÂ… I donÂ’t trust this deal! Wiese has a holding of more than 2.5 Billion in Steinhoff and a holding of more than 13 Billion in Brait. It is clearly not beneficial for him to undervalue Brait, UNLESS there is something we donÂ’t know aboutÂ…Â…??!! I bought Brait shares mainly for the PEP exposure. I guess I donÂ’t have any reason to stay invested in them and I definitely donÂ’t want any exposure to Steinhoff.
0 Kudos
Regular Contributor

Re:Market reaction on sens

but Look at SHF now - well over R57 and climbing - my only fear is when do PSG and the Stellenbosch Mafia pull out the carpet AGAIN
0 Kudos
stefanb
Contributor

Re:Market reaction on sens

Now almost half of Brait will be In cash, I am not paying a Premium for cash!! At current price Brait offers little value, I see Sp going much lower in order to justify the current PE. Don't forget that whatever Brait acquire will come at premium.
0 Kudos
Regular Contributor

Re:Market reaction on sens

Totally agree - Why on Earth would BAT sell their Pep cash cow for SHF. I believe this is a massive why for BAT/PSG to get cash off shore through the SHF listing on the DAX
0 Kudos
Regular Contributor

Re:Market reaction on sens

I am not complaining. Steinhoff is rocketing. Steinhoff's TNAV will increase by 77%.
0 Kudos
Regular Contributor

Re:Market reaction on sens

I am complaining even though I own both - SHF is my preferred share going forward - see R150 in the future but why dont PSG/SHF/KAP etc not send a cautionary
0 Kudos
Not applicable

Re:Market reaction on sens

well, as a holder of Steinhof, I am happy - but the 16% loss I have taken in Brait has not exactly been offset by the modest 5% gain in Steinhof. I still don't see why Brait would do this, honestly - it does not make any sense. Only benefit goes to Steinhof. Maybe they couldn't list Pep? (I mean, Brait only has a 37% stake in it - so not exactly controlling).
0 Kudos
Regular Contributor

Re:Market reaction on sens

But that is my point - beside PEP owning 8 stores in Poland which no one knows abt how can that grow SHFs foot print in Europe, which is massive already - Pep as the biggest supplier in SA for mobile phones surely a link up with MTN/Vodacom a better idea.This is the PSG/KAP/CPI and all the others in cohorts. The JSE needs to investigate this nonsense
0 Kudos
Regular Contributor

Re:Market reaction on sens

I love what they are doing but surely a cautionary should be issued
0 Kudos
Super Contributor

Re:Market reaction on sens

Down with 20%.Is this based on financials or is this a textbook example of a no confidence vote in real life?
0 Kudos
ET
Contributor

Re:Market reaction on sens

Shoprite next?
0 Kudos
Super Contributor

Re:Market reaction on sens

Interesting: BusinessDay TV ‏@BusinessDayTV 52s53 seconds ago Christo #Wiese buys 30‚000 single stock futures contracts‚ or 3-million #Brait ordinary shares at R73.50 per share for R220.5m
0 Kudos
Super Contributor

Re:Market reaction on sens

Looking at that chart I have a feeling it's worth a punt around R70.
0 Kudos