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jaj
Frequent Contributor
I must admit that I have never been involved in mayor decisions that CEO of major conglomerates are dealing with although I do have a fair amount of management experience. I am seriously disappointed in the decision of Steinhoff to go offshore and obtain finance from some international institutional investors. I am a private long term investor in Steinhoff and I would have bonded my house and sold my mother in law to participate in a right issue at R52 to buy Steinhoff shares and would have made the profit the institutional investors, that may not even own shares in Steinhoff, are now pocketing. On the announcements day I was sitting with an R125k loss and I believe this is not fair. What about my long term loyalty to Steinhoff?
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14 REPLIES 14
fakeseq
New Contributor
You will get to participate in the rights issue. 50% of investors gave up their rights but you will get them on Thursday the 10th I believe.
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jaj
Frequent Contributor
Thanks, I did not notice any announcements in this regard.
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koos2
Super Contributor
If i want moar SHF do i buy the rights issue at 100 rights to 16 shares or do they give me 100 for 100? or do i just buy the shares and forget about the rights? what would be the differance in transaction costs between the options? Thanks!
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SimonPB
Valued Contributor
koos, every NPL will give the right to 1 SHF .. current holders of SHF will get 16 NPLs per 100 SHF shares they hold ..
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koos2
Super Contributor
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Shadow_W
Occasional Contributor
Can someone please explain to me how Standard Bank adjusted the CFD's to account for the SHF rights issue? The SBK announcement says that you will get an additional 0.78 CFD's for every 100 held. If the initial margin is R7.68 this equates to R5.99 (0.78 X 7.68) per 100 CFD's. My calculation is as follows: 100 shares gives you 16 rights. Each right is worth R3.75 (55.75-52). Therefore each share's right is worth 60c ((3.75X16)/100). How does this equate to Standard Banks adjustment?
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koos2
Super Contributor
How do i object to a reversal of a SHFN rights trade by the powers that be?
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fakeseq
New Contributor
I cant understand how Standard Bank has adjusted the CFD'd for the rights issue? Surely it is 7.8 CFD's for each 100 and not 0.78????
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itsytobias
New Contributor
Must be honest I cant understand it either. Closing price on Friday was R55.75 giving the rights a value of R3.75. At 16 rights per 100 this gives a value of 60c per share. If the initial margin on the SHF CFD's are R7.68 then I would expect the adjustment to be 7.8125 CFD's per 100 held, not 0.78 CFD's.
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itsytobias
New Contributor
Must be honest I cant understand it either. Closing price on Friday was R55.75 giving the rights a value of R3.75. At 16 rights per 100 this gives a value of 60c per share. If the initial margin on the SHF CFD's are R7.68 then I would expect the adjustment to be 7.8125 CFD's per 100 held, not 0.78 CFD's per 100 held.
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Shadow_W
Occasional Contributor
The Standard Bank calculation is right. If you look under your variation margin it has been adjusted to account for the rights issue.
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Pete460
New Contributor
Yes big Rip off - lost value to over dilution - not even worth your while to take up offer at R52 - trading at R54.70 - npl at 2.7 o ram I missing something??
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AJ_
Contributor
Is it a buy at current price or should one wait for further pull back in short term (say a week).
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pwf
New Contributor
The purpose for raising the money offshore was to bring that foreign currency back into South Africa in terms of an undertaking to SARS. There are already rumors about how Steinhof is going to use that money locally. Also, it is planning an offshore listing which makes sense to have offshore investors. Clearly this whole rights issue is misunderstood by the market which may also have an impact on price.
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