KAP Agrees to Buy Steinhoff’s Industrial Assets in Deal Worth $1.1 Billion
Stock Chart for KAP Industrial Holdings Ltd (KAP)
KAP International Holdings Ltd. (KAP), a South African company with manufacturing investments, said it will acquire Steinhoff International Holdings Ltd. (SHF)’s industrial assets in a deal valued at 8.92 billion rand ($1.1 billion).
Steinhoff’s holding in KAP will rise to 88 percent from 34 percent after Cape Town-based KAP issues new shares. KAP will also credit a loan account for about 4.14 billion rand in favor of Steinhoff, the company said in a statement today.
The acquisition will leave KAP “better positioned” to capture growth opportunities in southern Africa, the company said. “The enlarged diversified industrial business is expected to be better placed to access capital both in the debt and equity markets at competitive rates and pricing,” KAP said.
Steinhoff, Africa’s largest furniture maker, is selling timber operator PG Bison, the Unitrans supply-chain business and Steinhoff Raw Materials. Steinhoff is focused on European expansion after acquiring rival Conforama for 1.2 billion euros in January.
KAP rose 10 percent to 2.42 rand at the close in Johannesburg, the biggest gain since Jan. 11. Steinhoff declined 0.8 percent to 22.49 rand.
To contact the reporter on this story: Renee Bonorchis in Johannesburg at email@example.com
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