SA investors join Dutch litigation against Steinhoff
Allan Gray, Investec’s asset management arm and Old Mutual are some of the investors joining a class action by shareholder group VEB
South African investors including Allan Gray, Investec’s asset management arm and Old Mutual are backing litigation against crisis-hit Steinhoff in the Netherlands, they said on Friday.
The investors represented about 20% of the shareholding in Steinhoff when the retailer uncovered accounting irregularities in 2017 that sent its share price tumbling, a statement from representatives of the investors said.
The case is being paid for by Claims Funding Europe, a litigation-funding company based in Ireland, and run by Dutch law firm BarentsKrans.
It is separate from a class action brought by the Dutch shareholder group VEB, whose lawsuit is aimed at compensating investors for the more than €14bn that has been wiped off Steinhoff’s market value since December 2017.
“We believe the circumstances merit these attempts to recover the losses incurred by our clients,” Allan Gray, which had a shareholding of about 1.3% in Steinhoff before its market value plummeted, said in a statement.
“Participating in this legal route is, therefore, our preferred option.”
Reuters