African Markets

The stock of Steinhoff has increased by 20% after creditors approved a transaction with the founders of Tekkie Town

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Steinhoff has passed another roadblock in its quest to reach a multibillion-rand financial settlement with investors who lost money when the company’s stock price plummeted in 2017.

Financial creditors opted to support recently disclosed settlements with the former owners of shoe shop Tekkie Town and Mauritius-based Trevo Capital, the retailer reported on Tuesday. Following the news, Steinhoff’s stock price rose over 20% to R4.96 at lunchtime.

Trevo and Tekkie Town were two of the last claimants to oppose Steinhoff’s R25 billion settlement plans, which the retailer claims are required to remove the looming danger of litigation and allow it to focus on repairing its tarnished reputation.