Al-Futtaim extends CMC shareholders offer to Feb

January 17, 2014
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CMC shareholders who are yet to submit their forms of acceptance have been advised to do so on or before 5pm on February 14/FILE
CMC shareholders who are yet to submit their forms of acceptance have been advised to do so on or before 5pm on February 14/FILE
NAIROBI, Kenya, Jan 17 – Dubai-based Al-Futtaim group has extended the offer period for CMC Holdings Limited shareholders to sell their stake up to February 14 from January 24.

This is after the Capital Markets Authority (CMA) approved to extend the offer on the basis that CMC shareholders did not have adequate time to respond to the offer document and the forms of acceptance following the Christmas, Kenya at 50 and the New Year’s holidays.

“Al- Futtaim is cognisant that the offer document was circulated to the shareholders on or around 11th December 2013 which coincided with the 50 years celebrations of Kenya’s independence and this was followed by the Christmas and New Year holidays. The extended holiday period following the circulation of the offer document meant that shareholders may not have had adequate time to respond to the offer document and the forms of acceptance,” the firm said.

CMC shareholders who are yet to submit their forms of acceptance have been advised to do so on or before 5pm on February 14.

Al-Futtaim made a cash offer for CMC for the purchase of a 100 percent shareholding in September last year which is expected to lead to a delisting of the auto firm from the Nairobi Securities Exchange.

The take-over price was set at Sh13 for each share representing a four percent discount below the last closing price of Sh13.50 when the company was suspended from the bourse on September 16, 2011.

CMC was suspended from the Nairobi bourse after squabbling between major shareholders, with investigations later revealing the existence of offshore bank accounts not recorded in the group’s books.

CMC later lost the Jaguar Land Rover (JRL) franchise whose brands accounted for 30 percent of its annual unit sales. It also lost exclusive dealership of MAN trucks with the appointment of a second dealer.

Later, major shareholders reunited in a bid to save the company with the remaining brands, with real estate being key assets that could have attracted the bid.

The Al-Futtaim Group holds over 40 companies and dominates many market segments in the UAE including automotive, finance, retailing and electronics, engineering and technologies.

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