NEWS
14/05/2018 07:28 SAST | Updated 14/05/2018 07:28 SAST

Steinhoff Under Fire: Coronation Fund Plans To Sue

One of Steinhoff's biggest shareholders is the latest firm to take legal action against it.

Former Steinhoff chairperson Christo Wiese and the company's executives appear at a parliamentary hearing into the Steinhoff scandal on January 31 2018 in Cape Town.
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Former Steinhoff chairperson Christo Wiese and the company's executives appear at a parliamentary hearing into the Steinhoff scandal on January 31 2018 in Cape Town.

Coronation Fund Managers is the first Steinhoff shareholder to take the company to court over "accounting irregularities", Business Day has reported.

Coronation spokesperson Louise Pelser told Business Day, "We are in the process of completing our legal due diligence on the various legal options available to us and have consulted extensively with international counsel in this regard. Once our legal due diligence is completed in the coming weeks, we will be well placed to decide which course of legal action is likely to yield the best outcome for our clients."

This follows the announcement by former Steinhoff chair, Christo Wiese, that he would be taking legal action against the firm. GT Ferreira and Tekkie Town are also taking action against Steinhoff. Tekkie Town was reportedly acquired by Steinhoff in 2016, but sold about a year later.

But Coronation is reportedly the first major investor to sue the firm.

Last week, Fin24 reported that the former executives allegedly implicated in the "accounting scandal" are under investigation. These reportedly include former CEO Markus Jooste. Steinhoff chairperson Heather Sonn reportedly said Jooste has been referred to the police.

He was reportedly paid a total of R43-million in three separate bonuses in 2016. The company is reportedly looking to recover bonuses paid to executives.

On Thursday, Tekkie Town filed papers in the High Court in Cape Town seeking to have its 2016 acquisition by Steinhoff overturned, MoneyWeb reported. The company reportedly believes it was misled by Steinhoff in terms of its financial position.

The latest news indicates that Steinhoff could be heading towards liquidation, Business Insider reported.

Herenya Capial Advisors founder Petri Redelinghuys reportedly said, "The list of shareholders suing the company; it is starting to look like they believe the company will be broken up or liquidated. The vultures are circling."