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Founders of Tekkie Town and Steinhoff agreed a pact.

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The former owners of Tekkie Town, a footwear retail company, have reached a settlement agreement with the Steinhoff Group, according to a statement released on Wednesday.

According to the settlement agreement, Steinhoff Africa Holdings will pay the former Tekkie Town owner claims R500 million in total and deliver 29.5 million shares in Pepkor Holdings, subject to a 180-day lock-up period upon transfer.

In exchange, Steinhoff Africa Holdings would take custody of any Steinhoff-related claims asserted by former Tekkie Town owners and related parties.

Following a previous bid by the former Tekkie Town owners to have the business dissolved, this brings a difficult chapter in the Steinhoff affair closer to a resolution.

Former owners of Tekkie Town claim they were tricked into swapping shares in their lucrative business for Steinhoff shares. Bernard Mostert, the former CEO of Tekkie Town, recently told Fin24 that he and his fellow claimants preferred to have their company “restored” rather than receive a reward under Steinhoff’s proposed global settlement.

Mostert also approached the Western Cape High Court in September, claiming that an R25 billion settlement proposal between Steinhoff and its claimants would send the impression that South Africa allowed corporate immorality.

Story by : Norvisi Mawunyegah