Association, PIC gunning for Steinhoff
The Public Servants Association (PSA) said yesterday it has teamed up with the Public Investment Corporation (PIC) – the second-largest shareholder in troubled Steinhoff – to pursue a lawsuit to recoup around $1.4 billion of pensioners’ money lost in an accounting scandal.
Steinhoff, owner of more than 40 retail brands, including Poundland in Britain, admitted “accounting irregularities” last month, triggering an 85% shareprice slide that wiped more than $10 billion off its market capitalisation.
Creditor groups of Steinhoff have been joining forces to position themselves for a potential debt restructuring at the company, people close to the matter said this week.
The PIC, which has around R2 trillion of government employees’ pensions under its custody, is among the hardest hit by the stock price collapse as it owns about 8% of the company.
“We want to recoup as much as possible and that is why we have an agreement with PIC to have a joint class action… to try and recoup the losses of those investments now standing at R17 billion,” said PSA’s Tahir Maepa.
The association added that documents obtained from Steinhoff painted a picture of a company with a “complete collapse” of corporate governance and “real maladministration” of its tax system.
Steinhoff did not immediately respond to a request for comment. – Reuters
Moneyweb
The R7 billion write-down of Woolworths’ Australian department chain David Jones has confirmed suspicions long held by market watchers – it overpaid for its massive gamble Down Under.
Woolworths’ announcement that it faces an impairment charge for David Jones of A$712.5 million (R6.9 billion) reflects how its expansion into Australia hasn’t lived up to expectations.
“It’s a reality check for Woolworths as they are recognising that they have made big mistakes in Australia and it overpaid for David Jones,” said Cassie Treurnicht at Gryphon Asset Management.
Woolworths completed its ambitious R22 billion acquisition of David Jones and sister retailer