Steinhoff International would swap 19 immovable properties and accompanying leases in exchange for new ordinary shares in JD Group, the listed furniture retailer said on Friday.
The properties were automotive dealerships located across South Africa, which were occupied by Unitrans Automotive, JD Group said.
The properties are subject to nine-year leases that commenced on July 1 this year.
Unitrans Automotive is an indirect wholly-owned subsidiary of JD Group.
JD Group Properties would acquire the dealerships for a purchase consideration of R446.9 million, the firm said.
The company will issue 9.5 million new shares to Steinhoff, increasing its shareholding in JD Group to 55.95 percent from 54.1 percent.
JD Group said the transaction was in line with its strategy to own strategic properties that would in time help to diversify the furniture group’s asset base.
JD Group stock increased 2.03 percent to close at R46.72 on Friday.
Steinhoff added 0.25 percent to R27.65. – Asha Speckman