Market reaction on sens

[AP]

Interesting comment about shoprite. based on the 3 year trend it is overdue for a downturn...I've made good money with it, riding the roller coaster...very predictable when to buy and when to sell

[THRESHOLD]

Sold at over 30X earnings. WOW! I highly doubt they would have achieved anything like that had they brought this to market (and they would have been competing for funds with EDCON's relisting.) AND - let's not forget the cost of coming to market. BRAIT shareholders should be delighted. SHF shares can be disposed of into a liquid market. BRAIT share volumes were - shall we say - a little constrained. I'm sure Wiese was driven largely by this consideration. Things will settle - BRAIT will have cash to move abroad - instead of a mostly SAfrican asset with all of the attendant risk. WIN, WIN! As for the drop in the share price - if over 30x EBITDA (crazy) is not high enough, then BRAIT's share price was too rich in the first place.

[THRESHOLD]

Brait will buy private assets - presumably at a steep discount to listed equivalents. She has sold at over 30x EBITDA (according to MONEYWEB.) If that is indeed the figure - then she can only do better!

[#4]

Pepkor being sold at 30 times PE, not EBITDA. Brait values their Pepkor stake at 11.5bn - on an 8 times EBITDA basis - which is ridiculous. Selling at 26bn - is roughly 18 times ebitda. Problem is though, that they are only getting R15bn in cash - and steinhoff shares being sold at a premium. Bear in mind that Steinhoff will have to dilute their earnings. Brait gets a pultry stake in Steinhoff. Personally, Pepkor was really going places - I really liked their Eastern European story. Now, I no longer have any exposure to it - and only a severely watered down exposure through Brait. So I am left with rubbish exposure to SHF (which I already had direct), R15bn cash exposure (which I am paying a 50% premium for) and some other also ran companies which don't excite me that much. Having said all of this though, CW has just taken a R200m bet on Brait, so go figure! Maybe a special dividend on the cards?

[Vince888]

Skaap, Although SHF is paying a 50% premium for BAT, wouldnt it still benefit SHF in the long run with growth expansion plans in the EU. although their earnings will be diluted through the issue of additional shares, Pepcor will potentially incease SHF earning in the long run. I can understand your frustration with BAT although I think that CW was just lining his own pocket. On the flip side of things perhaps there are planned investments in the pipeline for BAT which are not disclosed to BAR shareholders yet.

[THRESHOLD]

MONEYWEB may well have got it wrong - 30x EBITDA (a common measure for private sales) is enormous. 30X PE is FAT enough in its own right. I no longer have any BRAIT. I had serious concerns about the level of SAfrican exposure. I imagine in the long run - this divestment will be for the better. PEP is mature and 8 stores in Poland barely warrants a mention.

[Russ]

Threshhold,do you still hold tdh? This is another Wiese stock that has done well and I think still has great prospects.

[THRESHOLD]

Yup.