South African investors including Allan Gray, Old Mutual and Investec’s asset management arm are backing litigation against crisis-hit Steinhoff in the Netherlands.

The investors say they represent about 20% of the shareholding in Steinhoff at the time when the retailer uncovered accounting irregularities in 2017.

They are joining a class action by the Dutch shareholder group, VEB.  This lawsuit is aimed at compensating investors for the more than 14 billion euros, or about R230 billion, that has been wiped off Steinhoff’s market value since December last year.

Allan Gray says they believe the circumstances merit this attempt to recover the losses incurred by their clients.

Watch related video below: