Steinhoff reaches agreement to sell shares in car dealer network Unitrans

Steinhoff [JSE:SNH] announced on Thursday that it had reached an in-principle agreement to sell 74.9% of Steinhoff Africa’s shares in automotive dealer network Unitrans.

Unitrans operates 99 dealerships throughout South Africa.

Steinhoff said it had also reached an agreement to dispose of 100% of the loan claims against Unitrans held by its subsidiary Steinhoff Africa.

The retail conglomerate said it had reached an agreement to sell the shares to CFAO Holdings South Africa. CFAO HSA is a 100%-owned subsidiary of CFAO, a subsidiary of the Toyota Tsusho Corporation.

It did not give an estimated price for the transaction.

The multinational said the decision to dispose of its shares in Unitrans came in the wake of a strategic review to sell some of its non-core assets, including its shareholding in KAP Industrial Holdings and Unitrans.

KAP and Unitrans have "very different business characteristics and growth drivers from the rest of Steinhoff’s retail portfolio. Negotiations for the disposal of Unitrans were therefore commenced in 2018," the Stellenbosch-headquartered retail conglomerate said in a notice to shareholders.

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