Steinhoff, Pepkor win Tekkie Town battle in SCA
The SCA has ruled in favour of Steinhoff and Pepkor in one of their legal battles with former Tekkie Town executives.
According to a report in Die Burger, the SCA overturned an interdict granted by the Western Cape High Court. The interdict prohibited Steinhoff and Pepkor from selling Tekkie Town or losing majority share control over Tekkie Town pending the finalisation of another court case in which the Tekkie Town founders seek the return of the Tekkie Town shares they sold to Steinhoff.
The High Court’s order not only prohibited Pepkor from selling Tekkie Town, but also prohibited Steinhoff from lowering its shareholding in Pepkor to below 50%.
The SCA held that all three companies in question are separate legal entities even though they may be wholly or partially owned subsidiaries of another.
It would be unjustified to limit a majority shareholder from dealing in those shares held in another entity.
Pepkor welcomed the judgment.
Even though Tekkie Town remains an important part of its strategy, clarification of legal principles about restrictions on share ownership was necessary, the company said.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
