Three South African executives selling 13 properties to their own company for R745 million

South African auto giant CMH has entered into a deal to acquire 13 dealerships valued at R745 million from its CEO, CFO, and executive director.

While some investors may frown at this related-party transaction, Protea Capital founder and CEO Jean Pierre Verster said this could make the automotive giant’s stock more attractive.

CMH, or Combined Motor Holdings, is an investment holding company with roots in the retail motor sector.

It provides financial services to vehicle owners and offers car rentals, maintenance, and insurance.

The company operates 38 retail motor dealerships and 51 car rental outlets across the country, operating through 36 brands.

Some of its brands include Ford, Toyota, Chery, Haval, Land Rover, Nissan, Suzuki, Mitsubishi, Honda, Isuzu, Jeep, Jaguar, and Volvo.

Dealerships are the core of CMH’s business, accounting for most of its revenue, workforce, and asset footprint.

In the 2026 financial year, CMH’s Motor Retail and Distribution segment generated R14.68 billion in external revenue, accounting for 94% of the group’s total revenue.

This segment also contributed 57% of the group’s total operating profit, R427.3 million out of the total R748.6 million.

The division employs 2,199 people, representing 78% of the total workforce of 2,712.

Currently, CMH has 38 retail motor dealerships that function as full-service hubs offering new and used vehicles, workshops, and in-house customer finance and insurance specialists.

Over the past two years, CMH has focused on restructuring its network, transitioning from many locations into multifranchise dealerships.

These dealerships blend traditional brands, such as Nissan and Volvo, with Indian and Chinese brands, including Suzuki, Foton, Mahindra, and Haval.

CMH announced on Wednesday, 19 August 2026, that it has entered into a deal to acquire 13 properties that the company was previously renting on an arm’s-length basis.

These properties, valued at R745 million, will be bought from three people associated with the company: CMH CEO Jebb McIntosh, CFO Stuart Jackson, and executive director Bruce Barritt.

Analyst opinion

In announcing the deal, CMH said the sellers want to sell, and the company’s management wants to buy the properties.

“Given that the sellers are related parties and wish to sell the Rental Enterprises, CMH was given the right of first refusal to acquire them,” the company said.

The properties were independently valued at R780 million and, over a 12-month period, generated R87 million in gross rental income.

CMH said the acquisition would have a positive impact on its balance sheet, as the properties would be recognised as assets and the company would no longer need to pay rent.

“Interest earned will reduce and interest payable will increase as existing resources are deployed to part-fund the acquisition, and the cost of borrowing the balance is recognised,” it said.

“Ownership will give the CMH Group control over strategic locations and the flexibility to manoeuvre should operational changes be required.”

Verster told BusinessDayTV that people might frown upon this acquisition because it is a related-party transaction.

However, he pointed out that this setup, where the executives own the property and CMH rents it, has been the case for many years.

“It’s one of the things of previous listings that are still being cleaned up, and that is when entrepreneurs still had businesses on the side,” he explained.

“I also don’t like that, but they’re cleaning this up as the CEO’s retirement date comes closer. So, I like the fact that they’re cleaning it up.”

Verster argued that this acquisition will tie up loose ends before McIntosh retires in the coming years.

McIntosh has already taken a step back at the company, with CMH’s head of motor retail and distribution, Charles Webber, effectively fulfilling a co-CEO role since June 2025.

Verster said the acquisition could put CMH in play if one of the other big automotive retailers wants to “bulk up”.

“They’ve got a very good network, a very good exposure to the Chinese brands that are doing better than the Western European brands. So, I like CMH as well,” he said.