NAIROBI, Kenya, Feb 17 – Dubai’s Al-Futtaim group said on Monday that it had secured over 75 percent stake of CMC Holdings so far, paving the way for successful conclusion of one of the largest foreign direct investment deals in recent times.
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 a total of 79.3 percent 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,” Shehadeh added.
Al-Futtaim group is in the process of purchasing 100 percent of issued shares of CMC Holdings, which is listed on the Nairobi Securities Exchange (NSE) at Sh13 per share.
Initially, the firm had set a threshold of acquiring 75 percent + 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 to sell their shares to the global diversified conglomerate at Sh13 each.
On successful completion of the Sh7.6 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.
Established in the 1930s as a trading business, Al-Futtaim is one of the most progressive regional business houses headquartered in Dubai, United Arab Emirates.
Al-Futtaim employs in excess of 40,000 people and operates through more than 100 companies. The group has significantly expanded its business operations in recent years through a strategic acquisition plan and has entered a number of new territories, increasing its footprint beyond the GCC and Greater Middle East to encompass South East and North Asia, Australasia and Europe.
Structured into eight operational divisions; automotive, electronics, engineering and technologies, financial services, general services, joint ventures, real estate and hospitality, and retail. The success of Al-Futtaim is attributed to proactively managing change whilst upholding the values of integrity, service and social responsibility. The majority of businesses, built on a portfolio of world leading brands, dominate their sector.