South Africa’s Steinhoff International is to swap several of its industrial assets for a bigger stake in manufacturer KAP International in a deal worth R8.9 billion.
Steinhoff will exchange PG Bison and Unitrans, along with its raw materials assets, for an increase in its shareholding in KAP from 34 per cent to 88 per cent, giving it control of the manufacturer.
KAP said the deal would give it an opportunity to acquire leading industrial assets in southern Africa to complement its existing portfolio, and establish it as one of the largest listed industrial portfolios in southern Africa.
KAP went on to say that it would be better positioned to capitalise on growth opportunities in southern Africa; and that it would be better placed to access capital at competitive rates and pricing. It also said Steinhoff would provide strategic assistance to ensure the success and continued growth of KAP within the southern Africa markets.
KAP is headquartered in Paarl with operations in Johannesburg, Durban, Cape Town, Pretoria, Port Elizabeth, East London and Krugersdorp. The company has interests in the manufacture of fresh and processed meat, maize milling, leather products, footwear, speciality fibres, bottle resin, automotive products and towelling products.
Johannesburg-based Steinhoff is an integrated retailer that manufactures, sources, warehouses, distributes and retails furniture and household goods in Europe, the Pacific Rim and southern Africa. The company has operations in the UK, continental Europe, Africa, India, Asia, Australia and New Zealand and employs approximately 55,000 people.
