NAIROBI, Kenya
Al-Futtaim Group has secured more than 75 per cent stake of CMC **ldings, 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 share**lders has been very positive, and by Friday (February 14, 2014), a total of 79.3 per cent of the shares had been acquired.
“We are delighted by the response from CMC share**lders. We are definitely on track to successfully conclude this deal. We expect even more share**lders to sell their shares to us before February 18 when the offer closes. This w*** 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 **ldings,” Mr Shehadeh added.
Al-Futtaim Group is in the process of purchasing 100 per cent of issued shares of CMC **ldings, which is listed on the Nairobi Securities Exchange (NSE) at Sh13 per share. Initially, the firm had set a thres**ld of acquiring 75% + 1 shares, for the deal to proceed but later waived this condition, with approval from the Capital Markets Aut**rity. Share**lders of CMC **ldings only have until 5pm on Tuesday (February 18, 2014) to sell their shares to the global diversif*** conglomerate at KSh13 each.
On successful completion of the Sh7.6 b***ion transaction, CMC **ldings Limited is expected to be delisted from the NSE, making the shares ***iquid for t**se w** do not take advantage of the offer. Al-Futtaim group operates 100 companies across 28 markets and represents over 100 global brands.
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