Ann Crotty Writer-at-large

The Dutch Investors’ Association (VEB), which launched legal proceedings against Steinhoff International in January, has notified the three banks involved in Steinhoff’s Frankfurt listing that it is holding them liable for damages incurred by Steinhoff shareholders.

The move by VEB stems from the role played by Absa, Barclays and Commerzbank in Steinhoff’s listing on the Frankfurt Stock Exchange in November 2015.

VEB said the prospectuses issued by the banks ahead of the listing were misleading.

"VEB questions whether the prospectuses properly represented Steinhoff’s financial position at the time.

"We believe the banks acted wrongfully in respect of Steinhoff shareholders," VEB’s head of European relations, Armand Kersten, told Business Day on Wednesday.

The financials on which the two prospectuses were based were withdrawn earlier in 2018, and shareholders were told the information could not be relied on.

If you are already a subscriber, please click on the following link below to go to the full article: Steinhoff: VEB to hold banks liable for losses.  

If you would like to subscribe  to BusinessLIVE Premium to read the full story, please click here to subscribe.