Steinhoff settles lawsuit in Germany over ownership of retailer POCO

26 April 2018, 5:18 PM | Reuters | @SABCNews

Image: Reuters

Shares in Steinhoff have plunged more than 30 percent, extending dramatic losses suffered in the previous session after the South African retailer revealed "accounting irregularities" and its chief executive quit. Sonia Legg reports.

South African retailer Steinhoff said on Thursday it agreed to sell a 50 percent stake in German furniture chain POCO to Andreas Seifert, settling a German lawsuit on the ownership of the business.

Seifert claims half-ownership of POCO, while Steinhoff had said he had to be bought out due to unspecified actions by his company, Seifert Enterprises.

Steinhoff said that parties in the hearing at the German court had agreed to settle the matter and that Seifert entities offered to buy a 50 percent stake in POCO based on an agreed equity valuation of 532.5 million for the whole business.

In February, a Dutch court ordered Steinhoff International to amend its 2016 accounts, handing victory to former business partner Andreas Seifert in a dispute over the ownership of discount furniture store chain POCO.

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