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Retail shareholders of Steinhoff International who saw the value of their investments almost wiped out in the wake of its accounting scandal will start receiving settlement cash from Wednesday.
The Stichting Steinhoff Recovery Foundation (SRF), an independent body set up to assess claims, has indicated it will commence with the distribution of cash recoveries to valid individual and institutional market purchase claimants on 10 May, the retailer said in a statement on Monday. The foundation has previously indicated it has received 43 000 claims worth €3.2 billion (about R64 billion currently), and it needed time to verify claims.
Claimants, however, are sharing a "pot" of about €1.4 billion to make up for the losses they incurred when Steinhoff's shares plummeted, and what they will receive will vary, as it also depends on when they bought their shares.
READ | This is what Steinhoff claimants can expect to get paid out from R25bn pot
"We are extremely pleased to have reached the stage in this process where we are able to distribute payments to eligible claimants," SRF chairperson Marcel Windt said in a statement.
"The SRF has overseen a thorough process and I’d like to thank the many parties involved for their contributions along the way, as well as the claimants for their cooperation and patience.”
Shares in Steinhoff, the majority owner of Pepco in Europe and Pepkor in SA, crashed about 90% after its accounting scandal in 2017, and have lost a similar amount over the past one year, given a crippling debt pile that has sent it into a form of business rescue.
Steinhoff shareholders rejected a plan in March that would have seen it hand over 80% of its equity to creditors, which came as it struggled with a €10.2 billion (R200 billion) debt pile, with its obligations exceeding its value by €3.5 billion.
This process, taking place under Dutch bankruptcy laws, may see current shareholders left with 20% of any restructured firm, though the monetary value of this is still uncertain.
READ | Steinhoff shareholders may now get rights to a fifth of any restructured firm
