Jooste’s effort to raise cash hits snag
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 owner 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 R1-billion 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.
“In that five-year phase the dividends in the company will be maximised. The result is that if you compel the applicants now to dispose of their shares when there are other legitimate expectations of earning maximised dividends at the crescendo of this growth phase is grossly unfair,” Eloff added.
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.
“The applicants have put forward their wish list as a form of legitimate expectation. They on some or other basis seek to elevate their wish list. This clearly does not meet the standard of the arrangement,” Harris said.
The judgment was reserved and it is unclear when Judge Justice Moshidi, the presiding judge, will deliver judgment.
Jooste was not available for comment at the time of publication.
Steinhoff shares closed at R1.25 on Friday.