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KAP International Rises on Steinhoff Swap: Johannesburg Mover

Jan. 26 (Bloomberg) -- KAP International Holdings Ltd. stock jumped the most in almost a month after Steinhoff International Holdings Ltd. said it would swap some of its shares in the company for more shares in furniture retailer JD Group Ltd.

KAP advanced as much as 6.9 percent, the most since Dec. 28, to 3.10 rand. It traded 6.2 percent higher at 3.05 rand at 1:39 p.m. in Johannesburg, where all three companies are listed.

KAP, a maker of clothing and textiles, has gained 39 percent since Oct. 17, the day before it agreed to buy Steinhoff’s industrial assets, including PG Bison Holdings and Unitrans Holdings, in exchange for shares. KAP’s stock market value is 1.3 billion rand ($166 million).

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

JD Group shares fell 2.3 percent to 49.57 rand. The stock had increased by as much as 1.5 percent after earlier saying sales rose 3.6 percent in the four months through December. Steinhoff rose 0.1 percent to 24.92 rand.

After the transactions, Steinhoff will own approximately 62 percent of KAP and 50.1 percent of JD Group, it said. The companies will retain their listings. KAP also 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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