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Steinhoff to Swap KAP Shares for JD Group in Partial Offer

Steinhoff International Holdings Ltd. (SHF) said it would make a partial offer to JD Group Ltd. (JDG) shareholders to buy control of the retailer in exchange for shares in its subsidiary KAP International Holdings Ltd. (KAP)

Steinhoff, Africa’s largest furniture manufacturer, will offer 16 KAP Holdings shares for each JD Group share to buy an additional 26.2 percent. The furniture maker owns 32.7 percent of JD Group and 88 percent of KAP Holdings, it said in a statement today.

Shares in KAP Holdings jumped the most since Dec. 28, adding 6.9 percent to 3.10 rand while JD Group, a furniture retailer in South Africa, dropped as much as 1.5 percent, trading 1 percent lower at 50.25 rand as at 10:33 a.m. in Johannesburg, where all three companies are listed. Steinhoff rose 0.1 percent to 24.93 rand.

After the transactions, Steinhoff will own approximately 62 percent of KAP Holdings and 50.1 percent of JD Group, it said. The companies will retain their listings. KAP Holdings manufactures automotive components, textiles and clothing, as well as processing meat and meat products.

To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at smantshantsh@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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