Companies in Dr Christo Wiese’s Titan Group have served summons on Steinhoff International Holdings (Pty) Ltd, registered in South Africa, and Steinhoff International Holdings NV, registered in the Netherlands, in respect of claims totalling approximately R59 billion. These claims relate to cash investments made by the Titan Group in Steinhoff in 2015 and 2016.
The companies claim cancellation of the agreement entered into with Steinhoff International Holdings (Pty) Limited in the year, 2015 whereby the Titan Group subscribed for shares in Steinhoff following the acquisition of Pepkor Limited from the shareholders of Pepkor. They now claim repayment of the subscription amount.
The second claim relates to the Titan Group’s capital injection into Steinhoff in 2016 to enable it to meet its debt obligations at the time of its acquisition of Mattress Firm in the US.
In a letter accompanying the summons, Wiese’s attorneys state that he believes it is in the best interest of all stakeholders in Steinhoff that a restructuring of the group be effected on fair and equitable terms. Wiese said in his view the Steinhoff group owned some excellent businesses most of which Steinhoff acquired from Pepkor in 2015. “In a restructured Steinhoff, these businesses have every potential of continuing to create value for all shareholders and claimants.”
The letter accompanying the summons states although the summons would be pursued, the plaintiffs were prepared to hold further steps in abeyance by agreement if discussions with a reasonable prospect of success could be arranged forthwith.
Wiese said his group was fully prepared to work with other claimants and shareholders to ensure that Steinhoff remains and continues as a sustainable company. This would require inter alia a restructuring of its current debt. This prospect is based on the continued excellent performance of the STAR group (containing most of the original Pepkor businesses) of which Steinhoff is currently the controlling shareholder.
“Many of the other business in the Steinhoff group offer good prospects and I strongly believe every attempt possible should be made to restructure the group as expeditiously as possible,” Wiese said.