Tekkie Town fallout puts Pepkor back in the spotlight
Pepkor regained faith from investors, but lost some again in its spat with former Tekkie Town executives
Having successfully convinced investors that the numerous corporate governance failings of its parent was not a feature of its own business, Steinhoff Africa Retail (Star) — since renamed Pepkor Holdings — has been thrown in the spotlight because of the increasingly antagonistic fallout between itself and the previous founder and executives of Tekkie Town. Following Steinhoff’s implosion in December, the Pepkor share price took a beating as investors may have deemed it guilty by association. The share price sank from R25 to as low as R15. However, in the absence of any material financial restatements and allegations of fraud, Pepkor slowly won back the confidence of investors and its share price recovered to above R20 per share. Since then, though, disagreements with the founders and former executives of Tekkie Town, a business that it had acquired from Steinhoff, has resulted in plenty of dirty laundry being aired. This included the contentious investment scheme undertaken by Pepko...