, NAIROBI, Kenya, Mar 3 – Dubai-based Al-Futtaim Group has received acceptance from shareholders of CMC Holdings Limited, to acquire over 91 percent of the motor dealer’s issued share capital, paving way for a conclusion of the Sh7.6 billion transaction.
According to the final results of the offer that closed on February 18, 2014, Al-Futtaim now holds forms of acceptances with respect to 533 million shares of the Nairobi Securities Exchange (NSE) listed motor dealer.
Al-Futtaim Group Director for Corporate Development Marwan Shehadeh said they are pleased by the extremely strong support from the shareholders of CMC.
“The positive response from CMC’s shareholders is a huge vote of confidence in the Al-Futtaim Group and in its plans for this region. We are looking forward to turning CMC around back to its glory days as the leading motor dealer in East Africa, in order to add value to its employees, its customers, the CMC franchisors and the economy of East Africa,” Shehadeh said.
The deal is one of the biggest foreign direct investment inflows into the Kenyan economy and is expected to highlight the appeal of Kenya to global firms seeking a foothold in the emerging African economy.
Al-Futtaim’s Automotive President Len Hunt said they will be pursuing opportunities to provide tier one services across the entire automotive value chain in Kenya and the wider region that includes sale, service and maintenance of new and used vehicles, machinery and equipment, in addition to the supply of genuine parts and accessories.
The successful acquisition of the CMC group is Al-Futtaim Group’s first venture into the sub-Saharan and Eastern Africa regions.
CMC Holdings Limited is expected to be delisted from the NSE upon successful completion of the transaction.