Kenya: Al-Futtaim Auto group has issued a notice to the remaining CMC Holdings shareholders that it will now undertake a compulsory acquisition. Al Futtaim has already acquired 90 per cent of the issued ordinary shares of CMC holdings.
There remain 48,949,632 ordinary shares being 8.4 per cent of the issued share capital of CMC. Al Futtain issued notices under section 210(1) of the Company’s Act on May 13, which all expired on Friday last week.
“Holders of the remaining shares are to claim payments by visiting any of the Kenya Commercial Bank (KCB) branches with the requisite documents and to fill a claim form,” said a statement from Al-Futtaim Auto and Machinery Company Ltd dated June 16, 2014.
Paying agent
Al-Futtaim will forcefully acquire the remaining shares at Sh13 per share with KCB appointed as the paying agent. The takeover offer for CMC Holdings Ltd by the Al-Futtaim group has set in motion the exit of one of the oldest car dealers in Kenya. Existing CMC shareholders have made a sum after selling off their shareholding to the global conglomerate headquartered in Dubai, United Arab Emirates.
“We are pleased for this opportunity to add value and synergy to East Africa’s automotive industry through CMC Holdings, a firm with rich heritage, just like the Al-Futtaim group,” said Marwan Shehadeh, group director of corporate development at the Al-Futtaim group.
“This is our first investment in sub-Saharan Africa, and we are looking forward to working with CMC for the long haul.” In September last year, Al-Futtaim group announced its intention to purchase 100 per cent of the share capital of CMC Holdings Ltd at Sh13 per share.
The acquisition was to be made through its subsidiary Al-Futtaim Auto & Machinery Company. On successful completion of the transaction, CMC Holdings is expected to be delisted from the Nairobi Securities Exchange, making the shares illiquid for those who do not take advantage of the offer.
