Steinhoff - Pepco stay in Warsaw
All,
Please find our unchanged analysis here.
The 15% stake Steinhoff are selling seems meaningful enough to drive the future valuation of the remaining PepCo stake, and therefore Steinhoff’s various outstanding instruments.
Pepco today formally announced its intention to float 15% of the company’s existing shares (cash to shareholder Steinhoff) on the Warsaw Stock Exchange, 5% of which to be allocated to Polish retail investors. Pepco has sufficient cash to pursue its continued growth and none of the IPO proceeds will remain within the company.
New Credit Facilities:
Moreover, the company has entered into:
- RCF (multi curr.) of E190m
- Senior Secured TL of E550m
Beneficiaries:
- In particular, the SEAG Bs and the SFH A2s should benefit from any increased valuation through the IPO.
Positioning:
We remain long the SFH A1s and A2s (former 21/22s and 23s), where the A1s also receive a benefit from Pepco, but are more dictated by the achievement of the grand settlement.
Happy to discuss,
Wolfgang
________________
E: wfelix@sarria.co.uk
T: +44 203 744 7003