Steinhoff proposes R16.5m settlement
Steinhoff has developed a settlement proposal which the international retailer hopes will resolve the billions of rands in legal claims against it.
The value of the settlement would be around R16.5 billion.
It would be paid in both cash and shares in retailer Pepkor, Steinhoff’s subsidiary, if the settlement is given the consent of creditors, regulators and eligible claimants.
The group faces around 90 separate lawsuits relating to accounting irregularities that emerged in 2017 and subsequent drop in the company’s share price.
"Not all claimants have yet sought to quantify their alleged damages, but the combined claims of those that have sought to do so are in excess of R136 billion," the company said in a statement.
Steinhoff's CEO Louis du Preez says compensating shareholders who suffered losses in December 2017 is a key objective.
"The proposed settlement terms being announced today are the culmination of 12 months of intensive effort. Although there is no certainty yet that we will be able to conclude this settlement, in our view these terms are firmly in the best interests of all stakeholders. We urge all claimants to engage positively with us and support our proposal to resolve the outstanding legacy claims.”
The proposed settlement will, if successful, be paid in cash and delivery of shares in Pepkor at R15 per share.