South African billionaire Christo Wiese has received a green light from the Western Cape High Court to continue with his lawsuit against his former colleague Markus Jooste, seeking to regain control of the prestigious Lanzerac wine estate.
This approval comes nearly two years after Wiese initiated legal proceedings against the disgraced tycoon, aiming to reclaim the exclusive property located in Stellenbosch or alternatively obtain its monetary value.
The controversy surrounding the Lanzerac wine estate dates back to 2012 when Wiese sold the historic property to a foreign consortium for about R220 million ($11 million) worth of Steinhoff shares. However, the value of these shares has plummeted to less than $40,000 today, prompting Wiese’s legal action.
Wiese, who briefly worked with Jooste at Steinhoff International Holdings, is urging the court to nullify the contract and restore ownership of the wine estate to him. Alternatively, he seeks compensation from Markus Jooste and Lanzerac Estate Investments equivalent to the estate’s current value, offering to return the Steinhoff shares he received as payment.
According to Wiese, Jooste initially claimed to represent a consortium of third-party investors when the deal was made in 2011. However, it has become apparent that Jooste was involved in the transaction from its inception.
Wiese further alleges that Jooste was aware of the fraudulent manipulation of Steinhoff’s financial statements during the negotiations.Â
In the lawsuit, Judge Ashley Binns-Ward of the Western Cape High Court dismissed three arguments put forth by the defendants to have the case thrown out.
The first argument claimed that the sale contract could not be canceled by Wiese based on its terms, but the judge disagreed, stating that any contract tainted by fraud can be canceled by either party.
The second argument argued against reversing the sale due to the decline in Steinhoff’s share value, but Binns-Ward found this argument unconvincing, ruling that Wiese could return shares in Steinhoff of the same class.
The judge also rejected the third exception, stating that Wiese had not included Aussenkjer Boerdery, one of the parties involved in the sale, in the case.
With the court’s decision to proceed to trial, Wiese and Jooste will now face the challenge posed by the attachment of Lanzerac by the SA Reserve Bank last year in its case against Jooste.
The trial date has yet to be set, but this lawsuit marks a crucial step in Christo Wiese’s pursuit to regain control of the iconic Lanzerac wine estate and seek justice for the alleged fraudulent activities surrounding the transaction.
