GEORGE NEWS - Tekkie Town is applying to the Western Cape High Court to reverse its 2016 acquisition by Steinhoff.
Warren Erfmann, former non-executive director of Tekkie Town, confirmed that Tekkie Town filed an application with the High Court yesterday afternoon (Thursday 10 May) on the grounds of "a massive misdeclaration of the facts".
"We want to reverse the sale as it was done on fraudulent terms. Steinhoff materially overstated their assets and materially understated their liabilities. We were misled during the acquisition process."
Erfmann said as non-executive director at the time of the negotiations, he had played an intimate role in the deal.
"We were happy to sell Tekkie Town because we thought we were dealing with a company that was built on sound financial principles, was part of the top 40 listed companies and was audited by one of the top five auditing firms. It made sense. That has all unravelled now and it has become clear that it was all a lie.
"We want our company back and they can have their shares back. At the end of the day there are a large number of staff and the 1 100 members of the founders' trust to whom we have a responsibility."
A 10 May process update by Steinhoff Inernational on Sens mentions that the group has received a demand from Tekkie Town amounting to about €120 million (R1,75 billion). This had bought Steinhoff the 58% portion of Tekkie Town that belonged to AJVH (Pty) Ltd (controlled by the Sport City Trust whose trustees are AJ van Huyssteen, BE Mostert and D Pretorius). It was paid out 100% in shares. Steinhoff paid cash for the other 42% portion of Tekkie Town that belonged to Actis.
Commenting on a question about the court application, Erfmann said, "We would not pursue this if we were not confident that we have a very good case."
He did not comment on the fact that the sale of Tekkie Town by Steinhoff to Star (Steinhoff Africa Retail) would complicate the reversal.
Read a previous article: Steinhoff shoe does not fit Tekkie Town
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