, NAIROBI, Kenya, Dec 17 – The takeover offer for CMC Holdings Limited by Dubai-based Al-Futtaim group has officially opened, setting in motion one of Kenya’s biggest foreign direct investment deals this year.
The opening of the offer now allows existing shareholders to sell their stake to the global diversified conglomerate headquartered in Dubai, United Arab Emirates.
Al-Futtaim Group Director of Corporate Development Marwan Shehadeh, expressed optimism that shareholders of CMC Holdings Limited would support the takeover bid.
“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. This is our first investment in sub-Saharan Africa, and we are looking forward to working with CMC for the long haul,” Shehadeh added.
In September this year, Al-Futtaim group announced its intention to purchase 100 percent of the share capital of CMC Holdings Limited at Sh13 per share.
The acquisition will be made through its subsidiary Al-Futtaim Auto & Machinery Company (FAMCO).
Already, the takeover proposal has received endorsement from 50.6 percent of CMC shareholders, who have undertaken to sell their shares when the offer opens.
The opening of the offer follows the requisite regulatory approval from the Capital Markets Authority (CMA) for this stage of the deal.
Shareholders of CMC Holdings Limited have up to January 24, 2014 to sell their shares to the Al-Futtaim group.
On successful completion of the transaction, CMC Holdings Limited is expected to be de-listed from the Nairobi Stock Exchange, making the shares illiquid for those who do not take advantage of the offer.
The offer document and shareholders circular will be distributed through the postal addresses as provided in the official shareholders’ registry.
They will also be available at all stockbrokers, investment banks, Dyer and Blair Investment Bank and KCB branches.
EFG Hermes, an investment bank in the Middle East and North Africa, is the transaction’s financial advisor.