Cape Town – Steinhoff Africa Retail (STAR) confirmed on Monday afternoon that it had received notice of a claim lodged by the founders and original shareholders of Tekkie Town around an earn out agreement.
STAR [JSE:SRR] is the JSE-listed company that contains Steinhoff’s African retail assets, including the shoe retailer.
“STAR has now received a summons on 4 June 2018,” it said in a shareholder announcement on Monday afternoon.
It did not give additional information around what the summons entailed.
“STAR confirms that it is still of the view that it is not a party to any such earn out agreement and STAR further confirms that it has received advice from senior counsel that there is no reasonable prospects of it being held liable in this regard.”
Tekkie Town was bought by Steinhoff International in late 2016. It was later transferred to STAR.
According to Moneyweb, the earn out clause concerns the fact that Steinhoff agreed to pay former Tekkie Town shareholders a bonus based on the group’s performance after it was acquired by Steinhoff.
The summons was lodged in the Cape Town High Court on Friday. Five companies are acting as plaintiffs, including AJVH Holdings, Aquilam Holdings, Xanado Trade and Invest 327, Liber Decimus and Full Team Sure Trade. STAR is the sole defendant.
Tekkie Town’s founder Braam van Huyssteen resigned from his role as the chairperson of STAR’s property division late last month.
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