(Ecofin Agency) - South Africa’s Steinhoff International will buy Australian furniture group Fantastic Holdings for 361 million Australian dollars (US$274 million), under an agreement signed by both companies.

In a statement published on October 15, 2016, Fantastic Holdings said the unit regrouping Steinhoff’s operations in Asia Pacific should acquire the totality of the Sydney-based group at AU$3.5 per share, representing a 23% premium on closing price of Fantastic Holdings share during quotation on October 14. Main shareholders of Fantastic Holdings already said they will approve the acquisition of their company by the South African retailer, the same source added.

The operation should bring Steinhoff’s stores in Australia to 282, up from 157 presently. “Fantastic Holdings is a complementary business in terms of market segments, customer base and vertical integration,” Steinhoff Asia Pacific director Tim Schaafsma said.

Steinhoff international owns 40 brands across 30 nations, including Bensons Lits and Harveys in the United Kingdom, and Conforama in France. It employs over 90,000 people in 6,500 stores worldwide.

The group which is headed by billionaire Christo Wiese generated 73% of its operating profit in Europe with 25% and 2% respectively in Africa and Australasia.