Scandals have been accumulating at Steinhoff in recent years: At the end of 2017, it turned out that the South African trading group with German roots had "fluffed up" its balance sheet by more than EUR 6 billion, and as a result the share price plummeted massively.
There are now around 90 lawsuits against the company from shareholders and partners with a total value of over EUR 7 billion. So what now? Now the company is offering the plaintiffs a settlement, as reported by the news agency Reuters. The total value of the offer amounts to EUR 850 million, i.e. little more than 10 % of the amount claimed. Steinhoff wants to pay half of this amount in cash and half in shares of its African subsidiary Pepkor. According to Steinhoff CEO Louis du Preez, the company had been working for twelve months to put together the settlement. "In our view these terms are firmly in the best interests of all stakeholders," Reuters quotes him as saying. Without an agreement, Steinhoff is threatened with closure.
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