Combined Motor Holdings (CMH) is set to acquire 13 properties occupied by its dealerships in a R745 million transaction involving three of the group’s executive directors and their associated family trusts.
The deal, announced on the JSE’s SENS platform on 19 August 2026, involves six properties in KwaZulu-Natal and seven in Gauteng. All 13 properties are already leased and occupied by businesses within the CMH group, meaning the acquisition will not result in an expansion of the company’s dealership network.
CMH Management, a subsidiary of the group, will purchase the properties from executive directors BWJ Barritt, SK Jackson and JD McIntosh, along with their associated family trusts.
The R745 million cash purchase price is below the combined independent valuation of the properties, which stands at R780 million. This represents a discount of approximately R35 million, or 4.5%, to the assessed market value.
CMH plans to finance the acquisition through R395 million from its existing cash reserves and a further R350 million bank loan.
The company says it has maintained surplus cash above its operational requirements for several years, allowing it to fund the acquisition while retaining sufficient liquidity.
The transaction follows a R192 million share buyback completed in December 2025. CMH's balance sheet had also accumulated more than R1 billion in cash.
The acquisition is expected to change the group's property and leasing profile. As both an operator and tenant of its dealership properties, CMH reported lease liabilities of R544.7 million at the end of February 2026.
By bringing the properties onto its balance sheet, the company will reduce its reliance on leased premises and eliminate rental costs associated with the properties.
CMH expects the transaction to have a positive impact on future earnings, saying the rental expenses avoided are expected to exceed the interest income it will forgo on the cash used for the acquisition, as well as the financing costs linked to the new bank loan.
However, the transaction is subject to additional scrutiny because the properties are being acquired from members of CMH's executive management. Under JSE rules, the deal is classified as a Category 2 related-party transaction.
CMH will therefore be required to issue a detailed circular to shareholders and convene a general meeting where independent shareholders will vote on the transaction.
The executive directors involved in the sale will be excluded from voting on the relevant resolutions.
The transaction remains subject to several outstanding conditions, including approval from CMH shareholders excluding the related parties, the successful securing of the R350 million bank facility and unconditional approval from the Competition Authorities.
CMH was co-founded by Jebb McIntosh and Maldwyn Zimmerman and initially operated a combined Chevrolet and Datsun franchise.
The group expanded through a series of acquisitions and mergers with independent dealerships before listing on the JSE Main Board in 1987, when it operated 14 dealerships.
In 1999, CMH acquired the South African rights to the National and Alamo car rental brands. Its 2005 merger with Forza Group further expanded its dealership footprint, including the Lyndhurst Auto BMW business in Johannesburg.
The company launched First Car Rental in 2008 following a restructuring of its vehicle rental operations.
CMH has since grown into a national motor and mobility group representing 36 vehicle brands across more than 100 dealerships. The company generates more than R14 billion in annual revenue and operates a rental fleet of more than 9,000 vehicles.
CMH currently has a market capitalisation of approximately R2.75 billion.