Why Steinhoff investors agreed to extend suspension of legal battle

JOHANNESBURG (Reuters) – Steinhoff said on Tuesday investors who were suing the company have agreed to extend the suspension of litigation by six weeks, allowing the crisis-hit retailer time to proceed with its investigations and restructuring.

Steinhoff said the legal proceedings, which were suspended in October last year, would be further suspended until May 15, 2019.

The lawsuit, brought in the Netherlands, was aimed at compensating investors for the more than 14 billion euros ($16 billion) wiped off Steinhoff’s market value ever since the retailer uncovered accounting irregularities last year.

The lawsuit was brought by a collective group known as VEB/European Investors, Steinhoff. It claimed that certain financial statements, prospectus and press releases issued by the company were incorrect and misleading, the company said.

Reporting by Tanisha Heiberg; Editing by Uttaresh.V

Related Content

Steinhoff says it will struggle to turn a profit in coming years

Steinhoff will struggle to turn a profit in coming years despite strong turnover as it restructures following an accounting scandal.

Steinhoff unveils restructuring plan

Steinhoff CEO, Louis du Preez unpacks the embattled retailers’ restructuring plan.

Omnia’s CEO: Why we are not comparable to Steinhoff or Tongaat

Omnia responds to Benguela's allegations.

Steinhoff: Investable or a dead horse?

Steinhoff has posted a loss of R8.9 billion for their six month financial performance ended March. The global retail conglomerate also reported a revenue jump from continuing operations of 2.9 per cent. Karl Gevers, Portfolio Manager at Benguela Investments joins CNBC Africa for more.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

As the new POPI Act takes effect, here’s what you need to know

The much debated Protection of Personal Information Act is being put to bed. President Cyril Ramaphosa announced on the 22nd of June that all operational provisions of POPIA will officially commence on 1 July 2020, except for two provisions, sections 110 and 114(4), which will only commence on 30 June 2021. Is it worth it for businesses not to comply and what are the security issues around it? Wale Arewa, CEO of Xperien and Leishen Pillay, Associate Director of Privacy and Technology at Deloitte join CNBC Africa to give insight.

SAA ready to cede control to private investors

Is the South African government prepared to let go of control of its ailing airline South African Airways in a bid to save it? "We are not obsessed with control," the deputy director general of the Department of Public Enterprises was quoted as saying. He added that the government was ready to cede management control to private investors. What does this mean for business - is it practical? Air News Editor, Heidi Gibson joins CNBC Africa for more.

UBA: Over-subscription expected at Nigeria T-bill auction

Traders say there’s a likelihood of oversubscription and further drop-in stop rates following today’s Treasury Bills Auction by Nigeria’s Debt Management Office. Bankole Odusanya, Head of Fixed Income Trading at UBA joins CNBC Africa to discuss the details....

Nigeria Manufacturing PMI sees steep rise to 53.9 points in June

After recording its lowest ever Manufacturing PMI at 43.3 points in May, FBN Quest's PMI recorded a steep rise to 53.9 points in the month of June. Chinwe Egwim, Economist at FBN Quest Merchant Bank joins CNBC Africa for more.

Partner Content

Sanlam launches urgent job-preservation initiative in response to COVID-19

Sanlam Investments is responding to the COVID-19 pandemic through large-scale support of the recovery of South African companies, from small enterprises to...

Is Market Volatility Here For The Foreseeable Future?

Content provided by CompareForexBrokers Prior to understanding why market volatility might be here to stay for the foreseeable future,...

Trending Now

Can Hong Kong Survive As Asia’s Financial Hub?

Beijing has rushed to push through a new national security law in Hong Kong. Critics fear the legislation threatens civil liberties promised to the territory through July 1, 2047. The city’s special status with the U.S. also appears to be under thr

Elon Musk’s Tesla becomes most valuable automaker in latest stock rally

After several years of losses, Tesla has delivered three straight profitable quarters since the third quarter of 2019 and surprised investors with solid first-quarter deliveries despite the virus outbreak.

WHO warns some nations still face ‘long, hard’ battle with COVID-19

GENEVA (Reuters) - Nations who fail to use all mechanisms available to combat the still-raging coronavirus will struggle to beat it, the...

A train bound for Africa’s future to emerge from the continent’s COVID-19 gloom.

On top of this, the fact that this was a contract won at one end of the continent by an entrepreneur from another end of continent also bodes well for the pan-African future of business.
- Advertisement -