The freefall in the price was prompted by the news that the company had reached an agreement to defer its debt of around €10-billion, originally due next year, to be repaid in 2026. Ryan Woods, head of trading at Independent Securities, says if shareholders don’t agree to this deferred debt transaction, they will effectively be handing everything over to the creditors. “If the shareholders do approve it, they end up holding 20% of the company.
“Pepco and Pepkor share prices haven’t exactly shot the lights out so the liabilities on Steinhoff’s balance sheet far outweigh its assets,” Woods says. Holding on to a 20% stake would keep the door open for shareholders to receive some kind of settlement or money in the liquidation process, but Woods says shareholders are being taken out on a stretcher and likely to receive next to nothing even if they hold out.
Du Preez was paid a long-term incentive of R16-million and a short-term incentive of R18-million. A remuneration footnote clarifies that these incentives are based on key performance indicators on which fulfilment and subsequent approval by Steinhoff’s remuneration committee results in performance bonuses.
“People thought there was a chance the company could restructure and move forward, particularly with Pepco and Pepkor in its stable. I don’t think anyone realised how much damage was actually done under Markus Jooste’s control and the chickens are now coming home to roost”.
Yesterday was a Sunday, in what country did the shares fall?
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