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Johannesburg - Furniture group Steinhoff International Holdings [JSE:SHF] said on
Tuesday it would sell several industrial subsidiaries to Kap International Holdings [JSE:KAP] in exchange for shares in a $1.1bn deal that will give it control of the
manufacturing firm.
Under the deal, Kap International will issue 1.9 billion
shares at R2.50 each to buy Steinhoff’s Unitrans supply chain business, sawn
timber maker PG Bison and a raw materials unit.
The transaction will lift Steinhoff’s stake in Cape
Town-based Kap to 88% from 34%.
Steinhoff, which has a 32.4% stake in South African furniture maker JD Group [JSE:JDG], also said it secured a call option to buy a further 27.2 million shares in JD Group in exchange for 435.2 million Kap shares.
If the option is exercised, it would cut Steinhoff’s stake
in Kap to 62% and increase its holding in JD Group to more than 50%.
Shares in Kap jumped 9.09% to R2.40 by 11:14 GMT, while Steinhoff declined 1.15% to R22.41 and Steinhoff gained 1.03% to R40.40.
