How Steinhoff shares doubled in just five days
Embattled Steinhoff International's share price rose by almost 27% this week to over R3.
It followed an announcement by the retailer that it has begun a consent process with creditors to finalise a debt restructuring plan.
Steinhoff has been on the brink of insolvency after the accounting irregularities scandal revealed last year.
CapeTalk's Kieno Kammies speaks to the founder of Herenya Capital Advisors, Petri Redelinghuys to find out how Steinhoff got its shares to double in just five days.
He says the release of Steinhoff’s interim results could have had a role to play in the dramatic increase in share price.
They declared dividend from their preference share a couple of weeks ago.... the fact that they declared it and they paid out signals...the company has enough liquidity to be able to pay preferential share, which is a good sign.Petri Redelinghuys, founder of Herenya Capital Advisors
The fact that they have been given a bit of reprieve from their creditors created a bit of positivity...Petri Redelinghuys, founder of Herenya Capital Advisors
What we saw two days ago, they put out a piece of information saying that they have created a document which they will be sending out to their creditors which is like a proposed restructuring and that was obviously hugely exciting and got the stock another 50% up from the day.Petri Redelinghuys, founder of Herenya Capital Advisors
To hear the rest of the explanation by Petri Redelinghuys, listen below:
This article first appeared on CapeTalk : How Steinhoff shares doubled in just five days
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