​Steinhoff’s ex-CEO could make a tidy penny after deal with banks

Steinhoff International Holdings former chief executive is set to cash in after Markus Jooste’s investment company has struck a deal with banks, Bloomberg reported.

In a letter seen by Bloomberg, Jooste’s personal investment company Mayfair Holdings Limited owes Investec, Absa, and the capital markets arm of Sanlam, a combined R959-million which had been backed by stock in Steinhoff.

However, Mayfair defaulted on its loans when Steinhoff shares crashed in December following an accounting scandal at the retail giant. In order to realize the most value out of Mayfair, the banks decided against liquidation, choosing a “breakup proposal” where less central business components within the company — such as real estate and racehorses — would be sold to release capital.

Mayfair has until the end of 2018 to sell assets to the value of R2.08-billion in order to repay approximately R1.6-billion in loans to banks and other creditors.

Bloomberg reported that two companies tied to Jooste and his son-in-law, Stefan Potgieter, may realise over R200-million from the asset disposals.


After Mayfair had paid its creditors, documents seen by Bloomberg show, the company would able to retain the proceeds from the asset sales which would amount to R500-million.

Since Jooste quit Steinhoff on December 5 last year, the company has referred him to an anti-corruption police unit. The Steinhoff scandal saw the company lose over 90% of its share value in the three days following Jooste’s resignation after news that German prosecutors began investigating the company for accounting fraud.

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Advertising
Advertising

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday