They are presently leased by the group on an arm's-length basis.
The properties, six in KZN and seven in Gauteng, were independently valued at R780m in April. Image: All Things Motoring International
Combined Motor Holdings (CMH) is set to acquire 13 properties for the cash purchase consideration of R745 million from three of its directors and their respective family trusts.
The company confirmed the transaction in a Sens announcement on Wednesday, with the agreement concluded with directors BWJ Barritt, SK Jackson and JD McIntosh on Monday.
The properties are presently leased by the CMH group on an arm’s-length basis.
They include two Mount Edgecombe rental enterprises, north of Durban, which will be purchased for a combined R165 million.
Two other properties in Umhlanga, adjacent to Mount Edgecombe, also form part of the transaction, bringing it to six properties in KwaZulu-Natal.
The other seven properties are in Gauteng.
The properties were independently valued at R780 million as at April 2026, putting the purchase price at a discounted rate of R35 million.
During the 12 months preceding the valuation date the properties generated gross rental income of approximately R87 million.
“The CMH Group currently holds and has consistently held over several years cash and near-cash reserves that exceed its present and reasonably foreseeable operational requirements,” the group said, explaining part of its rationale.
“The directors of CMH have considered various options for the utilisation of this surplus cash, one of which was the voluntary pro rata share buyback concluded in December 2025 which, although under-subscribed, returned R192 000 000 to CMH shareholders.
“The buyback, if fully subscribed, would have returned R400 000 000 to CMH shareholders. Consequently, the CMH Group still holds cash that is surplus to its needs,” it added.
The acquisition of the rental enterprises and the underlying properties would result in the properties being recognised on CMH group’s balance sheet.
Th group added that given that the properties are currently leased on a triple-net basis, no additional operating costs are anticipated.
Funding the transaction
CMH will obtain a bank loan in the amount of approximately R350 million, being 47% of the purchase consideration, within 45 business days from the signature date.
“The proposed facility is to be provided at commercial interest rates, and with an indicative repayment period of four years,” the Sens reads.
The balance of the purchase consideration will be payable using CMH’s existing cash reserves.
The board of CMH, excluding the related directors, “having regard to the rationale for the transaction, the corporate governance processes undertaken and the recommendation of the independent board” have unanimously resolved that the transaction is in the best interests of the CMH Group and CMH shareholders and approved the execution of the agreement.
The board “accordingly recommends that CMH shareholders vote in favour of the transaction” at the general meeting to be convened soon.
The company’s shares traded more than 1% lower on the day, at R38.50.
This article was republished from Moneyweb. Read the original here.
