Steinhoff's equity hopes

All,

Steinhoff are out this morning with a release that in theory should not surprise anyone, but which we certainly have been discounting in the past.

"Steinhoff will also consider early resolution of the claims brought against it and the possibility of using the permitted settlement arrangements introduced into the new terms of the Steinhoff finance documents and approved as part of the financial restructuring implemented in August 2019. These arrangements may include, among other options, an equity issuance by Steinhoff."

Clearly that would per se not solve the high indebtedness of the group, but we have the Pepkor sale (touted 25% IPO) for that.

We will publish an updated analysis soon.

Wolfgang