The Wieses want Pepkor back

R59 BN CLAIM: THIS MIGHT TEAR STEINHOFF APART

Must prove the financial statements of Steinhoff were fraudulent, say experts.

it’s in the best interest of all Steinhoff stakeholders that a group restructuring be effected on fair and equitable terms.

In Wiese’s view, the Steinhoff group owned some excellent businesses, most of which it acquired from Pepkor in 2015. “In a restructured Steinhoff, these businesses have every potential of continuing to create value for all shareholders and claimants.”

Investors were informed of progress around claims made by vendors (individuals and entities that sold businesses to Steinhoff) at last week’s AGM. Moneyweb learnt that Wiese was allegedly one of the vendors making claims, with particular reference to the Pepkor acquisition.

When approached for comment, Steinhoff stated: “The group is currently in communication with vendors and no formal legal proceedings have been instituted to date by any vendors, therefore we are not in a position to quantify any claims.”

The Wieses and Pepkor

As per a November 25, 2014, Sens announcement, in exchange for the Wiese family’s direct stake in Pepkor, Wiese received 609.1 million shares in Steinhoff based on a share price of R57 a share. In addition, Brait, which Wiese indirectly controlled through a 34% interest, received 200 million Steinhoff shares and R15 billion in cash for its 37% stake in Pepkor. The total transaction was valued at R61 billion.

For the financial year ending June 2015, months after being vended into Steinhoff in exchange for shares, the previously privately held group reported revenues of R45 billion and R2.2 billion profit after tax, enabling it to pay a R2 billion dividend for the year.

To do the deal with Steinhoff though, Wiese relied on Steinhoff’s 2014 annual financial statements, statements that we revealed, through leaked e-mails this year, could have been fraudulently manipulated by Markus Jooste.

Lawyers we’ve spoken to seem to suggest that Wiese might have a valid claim regarding the Pepkor transaction, if he can prove the financial statements were fraudulent.