Embattled retail giant Steinhoff International says the proposed a R16.5 billion settlement for 90 cross-border lawsuits against the group is a product of 12 months of effort to settle with complainants.
Steinhof is faced with dozens of lawsuits following the massive plunge in the group’s share price in the wake of dodgy accounting – which surfaced in 2017.
Steinhoff CEO, Louis du Preez, says the settlement could be paid in cash and in shares of its subsidiary Pepkor Holdings.
Steinhoff reported that, if the settlement proceeds, it will result in a settlement of up to R5.1 billion to cover market-purchase claims. Approximately R2 billion for contractual-party claims and R9.4 billion for contractual counterparties claims against Steinhoff International Holdings.
Steinhof further pointed out that the proposed settlement terms would not constitute an admission of liability by any member of the group or employees.
In the video below, Steinhoff gets a multi-million rand penalty: