By Isaac Ndou
CAPE TOWN: Tekkie Town firmer owners being led by founder Braam van Huyssteen and CEO Bernard Mostert have filed court papers with relation to the scheme they had agreed on by Steinhoff Africa Retail (Star) a year ago.
The “earn out” scheme which happened when Steinhoff Africa Retail bought Tekkie Town in 2016 for a figure which was believed to have been around R3.2 Billion which was supposed to be paid in shares, an agreement which Van Huyssteen wants to reconsider.
The agreement which is being stated by Tekkie Town former owner is being denied by Star, saying that they were not liable for the matter according to a statement the released following the breaking of the issue.
It is believed that the court papers reveal that Mr La Grange who was CEO at the time of the deal which was in October 2017 wanted to amend the terms of the earn-out to accommodate the year that had been lost due to the restructuring.
“Star confirms that it is still if the view that it has received advice from senior counsel that the is no reasonable prospects of it being liable in this regard,” part of the statement read.
However, Van Huysten says the agreement happened, claims my that he even shook hands with Steinhoff CEO Markus Jooste to back his story.
“I shook hands with Jooste. We agreed on the deal and the terms of the earn out and it was landed to the mergers and acquisitions team for execution.
“But there was also internal resistance from some of the hierarchy inside Star who did not want Tekkie Town executives, including myself and Bernard,” said Van Huyssteen.
It is said that the court will decide whether the correspondence and engagements constitute a legally binding contract.