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JOHANNESBURG - Steinhoff Africa Retail (STAR) said on Thursday it expects one of its subsidiaries to repay part of the loans it owes its majority shareholder Steinhoff Africa Holdings by issuing preference shares to South African financial institutions.

“The subscribers have indicated that they are willing to subscribe for preference shares with an aggregate subscription price of approximately 6 billion rand ($503 million) subject to the fulfilment of certain conditions precedent,” STAR said in a statement.

At the end of Sept. 30 its shareholder loans amounted to approximately 16 billion rand, it said in December.

Meanwhile, a Dutch shareholder group has given notice that it plans to file a class action lawsuit against Barclays Plc, Commerzbank AG and Absa Bank Ltd over their roles in a 2015 share sale by South African retailer Steinhoff International, the Financial Times reported on Wednesday.

As required by Dutch law, shareholder group VEB gave the three banks two weeks’ notice of its plan to file the lawsuit and invited them to open talks on “an amicable settlement”, the report said.