Star’s shares fall almost 5% on news the company is being sued
The share price of Steinhoff African Retail (Star) — soon to be renamed Pepkor — fell nearly 5% to R16.54 on Tuesday, with its confirmation that Braam van Huyssteen and other founders of Tekkie Town were suing it on Monday evening, worsening a general slump in retail shares. The JSE’s retailers fell after Statistics SA reported a slump nearly five times worse than expected in the country’s first quarter GDP. The food and drug retailers index fell 2% and the general retailers index fell 3% after the disappointing GDP report. However, Star’s parent, Steinhoff International, bucked Tuesday’s retail slump, rising 7.5% to R1.15. Star issued a statement at 5pm on Monday saying that it had received a summons from Tekkie Town’s lawyers. Steinhoff International informed shareholders on May 10 that the vendors of Tekkie Town were suing it for about €120m. This was in addition to a €110m claim from shareholder GT Ferreira and R59bn claim from former chairman Christo Wiese. Along with its Sens ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.