Viceroy, the group that exposed accounting fraud at Steinhoff, has struck again.
After weeks of speculation about which SA firm it had in its sights, the group on Tuesday published a report on SA bank Capitec [JSE:CPI] and the unsecured lender is feeling the heat.
Capitec’s shares were trading down 7.8% on Tuesday at 10:30, after earlier trading down 10%. The best performing share on the JSE over the last ten years has seen a drop of 20% since Friday.
Viceroy came to prominence for SA investors after it released a report into Steinhoff shortly after the Stellenbsoch-headquartered firm’s share price tanked.
In its new 33-page report, published and uploaded to its website, the short sellers said the did not but Capitec’s 'good news story'.
“Capitec Bank Holdings Limited is a South Africa-focused microfinance provider to a majority lowincome demographic, yet they out-earn all major commercial banks globally including competing high-risk lenders,” the group wrote.
“We don’t buy this story. Viceroy believes this is indicative of predatory finance which we have corroborated with substantial on-the-ground discussions with Capitec ex-employees, former customers, and individuals familiar with the business”.
Capitec did not immediately reply to a request for comment.
- A third of JSE shares crashed by more than 15% this year – as SA suffers its longest downturn in 70 years
- Group confirms suffering damage to its reputation
- Steinhoff lost R80 million on the sale of its brand new company jet - and 6 other things we've learned from its results
- Markus Jooste profited handsomely from Steinhoff property deals
- Capitec and Nedbank shortlisted to buy South Africa’s ninth largest bank