South Africa's Steinhoff ups its global lawsuit settlement offer by $286 mln (updated)

Lifeist Wellness

16/07/2021 15:57

(Adds details of increase)
    JOHANNESBURG, July 16 (Reuters) - Scandal-hit South African
retailer Steinhoff International  SNHJ.J  said on Friday it was
increasing the amount of its proposed lawsuit settlement offer
by an additional 243 million euros ($286.72 million), taking the
total to 1.2 billion euros. 
    The announcement sent its Johannesburg-listed shares up
close to 7%, while its primary Frankfurt-listed shares  SNHG.DE 
jumped by 2.2% by 1415 GMT.
    The retailer faces 90 separate legal claims against it in
the Netherlands, Germany and South Africa from shareholders who
lost money when it revealed holes in its accounts in December
2017, the first sign of a fraud estimated to total over 9
billion euros.
    "There has been a material improvement in the underlying
financial and operational performance of the Group since the
announcement of the settlement proposal in July 2020, when both
COVID-19 and adverse currency movements had negatively impacted
the financial resources available to fund a global settlement,"
Steinhoff said.
    As a result, the total settlement offer to Steinhoff
International Holdings N.V. (SIHNV) contractual claimants and
Steinhoff International Holdings Proprietary Limited (SIHPL)
market purchase claimants will increase to 613 million euros
from 370 million euros. 
    Therefore the total amount on offer to the SIHNV and SIHPL
market purchase claimants is now estimated to be about 442
million euros, up from 266 million euros, Steinhoff added. 
    "The revised proposal offers claimants a fair outcome, and
the best opportunity to recover amounts in respect of any claims
in the near term and with certainty," Group Chief Executive
Officer Louis du Preez said.
    Steinhoff owns furniture, electronics, homeware and clothing
brands under majority-owned Pepkor  PPHJ.J  in Africa, Pepco in
Europe  PCOP.WA , Greenlit Brands in Australia and New Zealand,
LIPO in Switzerland and a 50% stake in Mattress Firm in the
United States.

($1 = 0.8475 euros)

 (Reporting by Nqobile Dludla
Editing by Promit Mukherjee and Louise Heavens)
 ((nqobile.dludla@thomsonreuters.com; +27103461066;))