CMC applies brakes on extraordinary meeting

January 14, 2014
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CMC said a future date will be communicated subject to grant of regulatory approval/file
CMC said a future date will be communicated subject to grant of regulatory approval/file
NAIROBI, Kenya, Jan 14 – Auto dealer CMC Holdings has postponed the Extraordinary General Meeting (EGM) scheduled for Thursday this week.

This follows a request by the Dubai based Al-Futtaim Auto and Machinery Company for an extension of the expiry date for a proposed take-over offer and pending the approval of the request by the Capital Markets Authority.

In a statement, CMC said a future date will be communicated subject to grant of regulatory approval.

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.

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 the 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 has collectively over 40 companies and dominates many market segments in the UAE including automotive, finance, retailing and electronics, engineering and technologies.

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