Steinhoff - early conversations
All,
Please find our unchanged analysis here.
Following the debacle of this morning’s Deliveroo Listing, the LSE is apparently keen to point to some future listings that more accurately reflect the market’s mood - i.e. not a company that benefited during the pandemic, but one that should benefit afterwards.
Pepco Poundland!
So far the idea had been to list the company in Warsaw, as this is the origin of Pepco, the fast-growing part of the business. But London is apparently keen to roll out the red carpet for the group and the company has entered into preliminary conversations, with management.
It becomes clear from the article that management has not really started another sales process yet, with no renewed engagement to solicit competing PE bids for the business like it had done early 2020.
On the bright side, management is stating - in line with our thoughts - that: "it expects post-pandemic economies to see greater demand for value-based chains”.
We remain long the SFH A1s and A2s, the latter of which should be among the prime beneficiaries of a good Pepco/Poundland IPO.
Please reach out to discuss.
Wolfgang
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