SIMON BROWN: I’m chatting now with Jimmy Moyaha, an independent analyst. Jimmy, I appreciate the early morning time. I mentioned Tongaat [Hulett]. They’ve had their massive rights issue approved; it does mean it’ll be a change in control at the same time. This share has been under massive pressure. Of course, it was suspended for an age. They’ve got challenges. They’ve [got] the sugar sector, property as well. They’ve got out of starch.
If I have to look at a share that’s trading in a similar price range, or even if we look at this rights issue and we’re benchmarking the share price, it will be somewhere between R2.75 and R3 – around there with the rights and everything. If I’m looking at a R2 share, I’m still holding a R2 share that I into got in last year, I would put that ahead at this point because it’s up almost 100%, and that’s Steinhoff.JIMMY MOYAHA: But that’s the thing.
SIMON BROWN: You make a great point referencing it to Steinhoff, because for a long time Steinhoff was best left alone and there was a point to be buying it. It turned out in hindsight to be late last year. The lesson is to kind of let them get the troubles behind them, let them sort it out. It might take a year or three. Tongaat is probably going to be a brilliant buy, but they need to get a lot more done first.
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