Steinhoff International Holdings NV (SIHNV) confirmed Wednesday that it has reached a settlement with disgruntled “ex-owners of the city of Tekkie,” a move that is expected to see plaintiffs now supporting the Steinhoff group’s crucial global settlement hit by the scandal.
The announcement sent Steinhoff shares soaring more than 22% on the JSE, to close at R3.15 per share.
Join heated discussions with the Moneyweb community and get full access to our market indicators and data tools while supporting quality journalism.
R63/month or R630/year
You can cancel anytime.
Steinhoff noted in his Sens statement that, as part of the Tekkie Town settlement agreement, SAHPL (Steinhoff Africa Holdings Proprietary Limited) “will pay the ex-owners of Tekkie Town claimants R500 million in total.”
In addition, SAHPL “will procure the delivery to the claimant ex-owners of Tekkie Town of 29.5 million of Pepkor Holdings Limited [PPH] actions subject to a 180 calendar day lock after the transfer, in order to acquire control of all claims related to Steinhoff alleged by the previous Plaintiffs of the owners of Tekkie Town and their related parties ”.
Read: Markus Jooste Loses Key Part of FSCA Insider Trading Penalty Appeal
“Tekkie Town’s former owner claimants will accordingly transfer control of all their Steinhoff-related claims to SAHPL, so that claims between them, Steinhoff, PPH, directors, officers and auditors [including the Liquidation Application] it may be resolved and withdrawn on terms that allow SAHPL and Steinhoff to benefit from compensation allocated to former Tekkie Town owner claimants under SIHNV’s composition plan, ”Steinhoff noted.
“We are pleased to have reached an agreement with Steinhoff effective as of the Agreement Effective Date of the Steinhoff Global Settlement Proposal,” Tekkie Town founder Braam van Huyssteen said in Steinhoff’s statement at Sens.
“We will support Steinhoff to implement the agreement as soon as possible. We are pleased to become shareholders of Pepkor and we look forward to concentrating on our business, ”he added.
Louis du Preez, CEO and member of the Steinhoff Board of Directors, commented: “[The] The agreement with the Tekkie Town applicants is another positive step towards finalizing the implementation of the Steinhoff global agreement. We continue to work toward the sanction of the SIHPL S155 proposal by the Western Cape Court in January 2022. ”
Meanwhile, Tekkie Town’s trained CEO Bernard Mostert (one of the plaintiffs, along with Van Huyssteen and other former owners and management of the athletic shoe retailer) confirmed in a separate statement that a settlement had been reached with Steinhoff. Group.
“There are a number of factors that contributed to our decision to settle with Steinhoff and its subsidiaries, including Pepkor,” Mostert said.
“Chief among these factors is that we are privileged to enjoy a huge boost in our new business. A greater focus along with the proceeds of the settlement, and without the distraction of litigation, will allow us to expand that momentum, “he said.
Read: Very colorful launch of Mr Tekkie
“In just under three years we have gone from zero stores to more than 160 stores and 800 wholesale accounts. With the litigation handbrake lifted, we can boost this business tremendously and significantly increase the nearly 1,000 jobs we have created since August 2018, ”he added.
Mostert said that an equally important consideration was the fact that their “participation in the settlement will allow South African class action participants to share in the proceeds of the settlement and address to some extent the losses they suffered at the hands of the Steinhoff scandal.”
“This has been a matter of historical and historical litigation and we hope that it will pave the way for legislation that does not impede the ability of the man in the street to participate successfully in recovery processes of this nature.”
“To that end, we respect Steinhoff’s final position to accommodate this class of claimants in the Steinhoff global settlement,” he added.
Regarding his incessant request and never-ending litigation to regain control of the Tekkie Town business, Mostert said: “We were very pleased to see this process through to the end as it was the most logical and rational remedy available to us. . However, we have come to expect the unexpected. One of those conclusions is that successful litigation and the return of control in the business would likely negatively impact the momentum we enjoy in our current business.
“So our focus now is forward and we take pride in the fact that we have built a successful business and are now busy doing it for the second time.”
“Wherever Tekkie Town goes and wherever Pepkor takes him, we are proud to have delivered him in good shape, our journey to build him and fight for him has shown how much we care about him and wish them the best to carry on without us.”