In the wake of the developments at Steinhoff (SNH), shareholders have found it difficult to assess the fair value of SNH. Without reliable financial information and increasing risk of litigation, investors have found it challenging to assign a value to the share with some degree of comfort. In this report we performed a detailed analysis of the SNH group structure, identified all the operating units (beyond management’s segmentation), and valued each unit separately. With this break-up valuation approach, we use the theoretical total proceeds to discharge all known debt, and making some allowances for contingencies.
