A group of South African investors want to join a Dutch class action suit against Steinhoff.
This is according to the Dutch Investors Association, which reportedly initiated its class action suit on December 7.
The European Investors’ Association is reportedly also joining the class action.
And it’s also being reported that Steinhoff faces a class action in Frankfurt on behalf of German investors.
Dutch authorities are also investigating Steinhoff’s auditors, Deloitte.
Dutch law reportedly gives the Dutch Investors Association significant powers to hold Steinhoff and its directors to account, while opening up the action to global shareholders.
VEB can also sue on behalf of anonymous investors. The suit could extend to Steinhoff’s directors and advisers at a later stage.
The European Central Bank revealed this week that it had disposed of its Steinhoff securities after the company was downgraded to junk status by ratings agencies.
Back in South Africa, the Parliamentary hearing into the company is scheduled to take place at the end of January.
Chairperson of the Standing Committee on Finance, Yunus Carrim, says the public hearings on Steinhoff will not duplicate other investigations into the company.
The retailer’s share price crumbled after reports emerged of alleged accounting irregularities and also following the resignation of its CEO, Markus Jooste.
But, it has been recovering since.
According to Carrim, the committee’s concerned about all affected South Africans and not only public servants.
At the same time, Steinhoff Africa Retail announced in a note to shareholders on Thursday that Vusi Khanyile has resigned as an independent non-executive director.
Steinhoff Africa Retail comprises all the African assets of Steinhoff including Pep and Ackermans.
Carrim says he has notified the Financial Services Board, the Reserve Bank, and the Independent Regulatory Board for Auditors and the JSE about the hearings.
The Public Investment Corporation and the Government Employees’ Pension Fund were also notified while Steinhoff will be invited to make a submission.
Click video below:
