Steinhoff - Update and additional positioning
All,
Please find our updated analysis here.
As the grand settlement will be taking longer than we had hoped and given our existing 4% of NAV position in the 21/22s (Luxfinco 1 A1s) is more aimed at benefiting from the settlement and less at value creation in the SEAG assets, we are adding another 4% of NAV in the 23s (Luxfinco 1 A2s).
As per previous notes, Pepco Poundland, Mattress Firm and Greenlit Brands are all doing comparatively well under the Pandemic, given their positioning in the home ware segment and their general discounter strategy (very different strategies, but substantially all at the value end).
We have updated and re-built the models for Pepco Poundland, Mattress Firm and Greenlit Brands and have updated certain key figures in Hemisphere and elsewhere. The result is that we feel that the fundamental outlook for the assets underlying this labyrinth of a structure has strengthened considerably and the 23s are their fulcrum.
Wolfgang
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E: wfelix@sarria.co.uk
T: +44 203 744 7003