Al-Futtaim gets over 75% in CMC buyout, expects more shareholders will release their stake before February 18

By STANDARD DIGITAL

NAIROBI: Al-Futtaim group secured over 75 per cent stake of CMC Holdings by Monday evening, paving the way for successful conclusion of one of the largest foreign direct investment deals in recent times in Kenya.

According to Marwan Shehadeh, the Group Director for Corporate Development at Al-Futtaim group, the response from the CMC shareholders has been very positive, and by Friday (February 14, 2014), a total of 79.3 per cent of the shares had been acquired.

“We are delighted by the response from CMC shareholders. We are definitely on track to successfully conclude this deal. We expect even more shareholders to sell their shares to us before February 18 when the offer closes. This will enable us to add value to the automotive industry in East Africa. As in all our investments, we are taking a long term view on CMC Holdings,” Mr Shehadeh added.

Al-Futtaim group is in the process of purchasing 100 per cent of issued shares of CMC Holdings, which is listed on the Nairobi Securities Exchange (NSE) at KSh13 per share.

Initially, the firm had set a threshold of acquiring 75% + 1 shares, for the deal to proceed but later waived this condition, with approval from the Capital Markets Authority.

Shareholders of CMC Holdings only have until 5pm on Tuesday February 18, 2014 to sell their shares to the global diversified conglomerate at KSh13 each.

On successful completion of the KSh7.6 billion transaction, CMC Holdings Limited is expected to be delisted from the NSE, making the shares illiquid for those who do not take advantage of the offer.

Al-Futtaim group operates 100 companies across 28 markets and represents over 100 global brands.