CAPE TOWN - The same research group that exposed Steinhoff for accounting fraud, Viceroy Research, has now accused Capitec of underhanded business practices.
After releasing a report , Viceroy Research alleges that Capitec has been engaging in what it called "reckless lending practices".
When releasing the report, Viceroy also took to twitter stating the following; "Capitec: A wolf in sheep’s clothing. Viceroy’s latest report is now".
At about 2pm, Capitec saw their share price slightly recover, following the announcement made by the SA Reserve Bank, stating that the bank is not facing bankruptcy.
With this report it’s clear, this world is not for the poor #Capitec
"Capitec received a copy of the Viceroy research report on Capitec at 10am this morning. Shareholders are advised that Capitec has not been approached by Viceroy for insight into our business and none of their allegations have been discussed." https://t.co/JdS8rKBt4G
Capitec: A wolf in sheep’s clothing. Viceroy’s latest report is now live. $CPI #JSE @SAReserveBank @CapitecBankSA
Fraser Perring of Viceroy Research will appear on Bloomberg @business at 8:30am GMT to discuss the report.https://t.co/5A0n53OEbb pic.twitter.com/v8qnXvuMnP
In response, Capitec also took to twiiter saying, " We have taken note of the Viceroy report on Capitec Bank. We are currently in the process of investigating the report in detail and will respond appropriately".
We have taken note of the Viceroy report on Capitec Bank. We are currently in the process of investigating the report in detail and will respond appropriately.
The matter is currently trending on twitter, and this is what South African's have to say:
This Viceroy report on #Capitec is going to have serious implications either way. Either Capitec are in trouble for reckless lending and cooking books, or Viceroy is in trouble for market manipulation.
I've seen "We believe" and "Viceroy believes" on the report about #Capitec more than 10 times.
We know what viceroy is. My dad likes it very much. We can't trust the research to be sober. #capitec.
But I still think Viceroy must present / show us concrete evidence #Capitec
The "WEST" can't have an African country progess. The Rand is gaining alil strength. Could this be a smear campaign to keep foreign investors from investing in Africa? Think about it? #Capitec
I see that financial analysts in South Africa wanna throw shade at Viceroy Research?
Let's see if they can produce reports that move the share price of a company by 20% in one day?
A 3 man team that's making all these CA's and CFA's look like punks!
Capitec's stock price tumbled 20% over Viceroy report but recovered most of the losses on the recommendation to Gigaba to put it under curatorship. #Capitec
- BUSINESS REPORT ONLINE