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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.