Hurdle to selling Lodestone

MARKUS Jooste’s attempt to sell one of the assets owned by his investment firm, Mayfair Holdings, to repay bank loans that were backed by the now-collapsed shares of Steinhoff International, may be scuppered by a group of associates.

The former CEO of the Stellenbosch-based retailer, whose shares have plunged more than 98% since December, is trying to sell Rascals owned Lodestone through a mechanism that would force its minority shareholders to also offload their shares.

Jooste’s Mayfair indirectly owns 67% of Lodestone and has until December to settle its debt.

Minority shareholders and the founders of Lodestone, who own about 22%, appeared in the Johannesburg High Court on Friday to block the bid that is being managed by Standard Bank.

Chris Eloff, the senior advocate representing the shareholders, said: “To force us to sell and to walk away is grossly unfair and will prejudice us.”

According to Eloff, banks including Absa, Investec and Sanlam Capital Markets are owed more than R1billion by Mayfair.

“Is it fair in relation to our interests … to be compelled to sell in circumstances where there are other ways in which it could be done? There are other equally fair processes, nothing stops the respondents [Mayfair Holdings] soliciting a buyer for their shares.”

Eloff said part of the reason the shareholders didn’t want to sell was because Lodestone was on a growth path which is intended to have interest in a five-year phase.

Mayfair’s senior advocate, Leonard Harris, denied that the shareholders were prejudiced as they had signed an agreement outlining the details of the shareholding structure that entitles majority shareholders to sell off their shares and force minorities to sell as well. —