The Public Investment Corporation has entered into a settlement agreement with JSE-listed retailer Steinhoff after the embattled company was found to have been involved in $7.4bn (R105bn) accounting fraud.
The government-owned PIC, which is Africa's largest asset manager with about R1.9-trillion of assets under management, said it entered into the settlement agreement to support the implementation of the Steinhoff global settlement.
"The proposed settlement forms part of the global settlement proposal first announced by Steinhoff in 2019 and the ongoing, related settlement processes in the Netherlands and South Africa," said the company in a media statement on Monday.
Steinhoff revealed in 2019 that an independent probe had found it had overstated profits by $7.4bn over a number of years.
The PIC, however, on Monday said the settlement agreement was subject to court approval which has started in the Netherlands.
The asset manager said on behalf of its clients it owned 8.56% of Steinhoff shares as at August 31.
In 2018 the PIC joined a group of approximately 40 institutional investors who brought damages claims against Steinhoff International Holdings N.V. before the Dutch court. A process of mediation ensued thereafter.
"The PIC believes the proposed settlement is in the best interests of its clients, given the alternative cost of protracted litigation and related uncertainties, and the prospect of further diminishing share value.
"It attempts to provide certainty and will allow Steinhoff the opportunity to recover as a company, to continue trading as a going concern and to avoid further job losses," said the PIC.
It said details of the proposed settlement agreement can only be disclosed once due legal process has been concluded.
"The settlement agreement does not preclude the PIC from pursuing further litigation against former Steinhoff directors and employees, if found responsible for the accounting irregularities and ultimate destruction of value at Steinhoff. The PIC will continue to cooperate fully and assist law enforcement agencies in respect of any criminal proceedings," said the PIC.
PIC, Steinhoff enter into settlement agreement
Image: Supplied\File
The Public Investment Corporation has entered into a settlement agreement with JSE-listed retailer Steinhoff after the embattled company was found to have been involved in $7.4bn (R105bn) accounting fraud.
The government-owned PIC, which is Africa's largest asset manager with about R1.9-trillion of assets under management, said it entered into the settlement agreement to support the implementation of the Steinhoff global settlement.
"The proposed settlement forms part of the global settlement proposal first announced by Steinhoff in 2019 and the ongoing, related settlement processes in the Netherlands and South Africa," said the company in a media statement on Monday.
Steinhoff revealed in 2019 that an independent probe had found it had overstated profits by $7.4bn over a number of years.
The PIC, however, on Monday said the settlement agreement was subject to court approval which has started in the Netherlands.
The asset manager said on behalf of its clients it owned 8.56% of Steinhoff shares as at August 31.
In 2018 the PIC joined a group of approximately 40 institutional investors who brought damages claims against Steinhoff International Holdings N.V. before the Dutch court. A process of mediation ensued thereafter.
"The PIC believes the proposed settlement is in the best interests of its clients, given the alternative cost of protracted litigation and related uncertainties, and the prospect of further diminishing share value.
"It attempts to provide certainty and will allow Steinhoff the opportunity to recover as a company, to continue trading as a going concern and to avoid further job losses," said the PIC.
It said details of the proposed settlement agreement can only be disclosed once due legal process has been concluded.
"The settlement agreement does not preclude the PIC from pursuing further litigation against former Steinhoff directors and employees, if found responsible for the accounting irregularities and ultimate destruction of value at Steinhoff. The PIC will continue to cooperate fully and assist law enforcement agencies in respect of any criminal proceedings," said the PIC.
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