Companies

Al-Futtaim secures over 91pc of CMC shares

cmc

Al-Futtaim’s corporate development group director Marwan Shehadeh (right), automobile president Len Hunt (centre) and investment and acquisitions general manager Yasser Alvi at a recent media event in Nairobi. FILE

Al-Futtaim group has received acceptances from shareholders of CMC Holdings Limited to acquire over 91 per cent of CMC’s issued share capital, paving the way for a swift 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.

“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,” said Mr Marwan Shehadeh, the Group Director for Corporate Development at Al-Futtaim Group.

The deal is one of the biggest foreign direct investment inflows into the Kenyan economy in recent times and is expected to highlight the appeal of Kenya to global firms seeking a foothold in the emerging African economy. It also demonstrates the potential and the long-term prospects of one of Kenya’s oldest vehicle dealers.

READ: Dubai Al-Futtaim Group bids Sh7.5bn for CMC Holdings

Al-Futtaim’s Automotive President Mr Len Hunt said: “We are very excited by this acquisition and the growth opportunity it represents. Al-Futtaim will be pursuing opportunities to provide tier one services across the entire automotive value chain in Kenya and the wider region. This 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 represents Al-Futtaim Group’s first venture into the sub-Saharan and Eastern Africa regions, providing an ideal platform to broaden Al-Futtaim’s footprint in new regions beyond its current operations in the Gulf Cooperation Council (GCC) states, the greater Middle East region and increasingly, in South-East Asia.

On successful completion of the transaction, CMC Holdings Limited is expected to be delisted from the NSE.