EXCLUSIVE: Tekkie Town hauls Steinhoff to court
Former owners, engaged in fight with Steinhoff Africa Retail for a share of future Tekkie Town profits, are going to court
The former owners of Tekkie Town — led by founder Braam van Huyssteen and CEO Bernard Mostert — have filed court papers for claims relating to an "earn-out" scheme they say was agreed to by Steinhoff Africa Retail (Star). An earn-out is a provision written into some transactions where the seller later gets an additional payment based on the performance of the business at that time. Star bought Tekkie Town for R3.2bn in 2016, to be paid in shares, an acquisition Van Huyssteen now wants reversed. He recently resigned from his role as chair of Star’s property division. Star has consistently denied that it agreed to an earn-out scheme. Reiterating that position this week, it said: "Star confirms that it is still of the view that it is not a party to any such earn-out agreement and Star further confirms that it has received advice from senior counsel that there is no reasonable prospects of it being held liable in this regard." The scheme would entitle its beneficiaries — executives from...
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