It seems that the board of Steinhoff International Holdings NV (“Steinhoff”) “chose not to inform investors of the dispute and potential claims arising from Tekkie Town vendors ahead of the private placement of Steinhoff Africa Retail (Star) shares conducted in early April.”
The purchase price for Tekkie Town was either settled in full or in part through the issue of Steinhoff shares, and the Tekkie Town vendors now maintain that at that time the “Steinhoff and Jooste’s representations induced the sellers to enter into the agreement and have now been exposed as false”, given what has transpired since December last year.
In a Core report issued prior to the STAR AGM in early March we already highlighted the excessive price paid for Tekkie Town. At the time we expressed our concern that this acquisition was paid for through an issue of STAR shares to Steinhoff and included in the STAR transaction – as part of the take-over of the divisions from Steinhoff – guided by some of the same executives who went on to become STAR executives.
Read the full artricle here.