Steinhoff’s legal woes mount as more Pepkor lawsuits line up
Executives and shareholders of its JSE-listed subsidiary Pepkor Holdings seek R2bn in damages
Steinhoff’s legal woes continue to mount as the company, whose share price collapse after the disclosure of "accounting irregularities" in December 2017 wiped more than R200bn off its value, faces more financial claims that could scupper its efforts at survival. In the latest setback, executives and shareholders of its JSE-listed subsidiary Pepkor Holdings (formerly called Steinhoff Africa Retail, or Star) are seeking R2bn in damages. In court papers obtained by Business Day on Tuesday, current and former executives of Pepkor who exchanged their shares for stakes in Steinhoff when the respective companies merged in 2015 in what was, at the time, the biggest corporate transaction in the country’s history, say they were misled into entering into that transaction. The summons was filed in the high court in Cape Town in late March. The executives, who held their interest in Steinhoff via a company called Business Venture Investments no 1499 (BVI), accused Steinhoff of "misrepresentation...