Al-Futtaim finalises CMC takeover bid

By NICHOLAS WAITATHU

Kenya: Dubai-based Al-Futtaim Auto and Machinery Company has finally taken over CMC Holdings Company after acquiring 91.60 per cent of the ordinary shares.

In an advertisement published yesterday in the local dailies, the Dubai-based conglomerate announced acquisition of 533.7 million shares out of the 582.7 million total ordinary shares the former motor company was controlling at Nairobi Stock Securities. “Al-Futtaim is now pleased to announce that the conditions set out in the offer document have been fulfilled as at March 31, 2014. Al-Futtaim hereby declares that the offer has become unconditional in all aspects,” says part of the advertisement. Attaining more than 90 per cent enables the company to compulsorily acquire the remaining 48,949,152 issued ordinary shares accounting for 8.40 per cent of the issued share capital in CMC.

“Considering that the offer has been accepted by shareholders holding more than 90 per cent of the issued ordinary shares in CMC, Al-Futtaim shall compulsorily acquire the remaining issued ordinary shares in CMC. Appropriate communication on the acquisition will be issued in due course,” the advert stated.

CMC was suspended last year from the NSE due to boardroom wars, which led to the removal of three directors including former chairman and top shareholder Peter Muthoka.

In February this year, shareholders controlling 69 per cent of the CMC had agreed to sell their shares to Al-Futtaim.  But the percentage was below the threshold of 75 per cent required to have the company delisted from the NSE. Major shareholders including Mr Muthoka, Charles Njonjo and Paul Ndungu who controlled 50.6 per cent stake had to agree first.  The acquisition ends ceaseless boardroom coups that saw the auto dealer lose the Jaguar Land Rover franchise to  RMA Group. 

Industry captains say the entry of Al-Futtaim will change the face of CMC, with new owners saying they will venture into new businesses and geographical markets.

“We are definitely interested in retail and property development,” Marwan Shehadeh, Al-Futtaim’s corporate development director said a month ago. CMC has significant parcels of land valued at about Sh2.5 billion including its head office premises along Nairobi’s Bunyala Road.