Mr Joel Kibe (left) shares a light moment with former CMC chairman Peter Muthoka at a past company event in Nairobi. Mr Kibe has been replaced as CMC chairman by Al Futtaim appointee Leonard Hunt. FILE
What you need to know:
Directors Mark ole Karbolo, Kyalo Mbobu, and Naftali Mogere left the CMC board following a board meeting on Thursday.
Al Futtaim appointee Leonard Hunt has replaced Joel Kibe as chairman.
Al Futtaim is in the final stages of buying out all shares of CMC Holdings for a reported sum of Sh7.5 billion.
Dubai-based conglomerate Al Futtaim has ousted three directors of motor dealer CMC in a boardroom shake-up that also saw chairman Joel Kibe replaced.
Directors Mark ole Karbolo, Kyalo Mbobu, and Naftali Mogere all left the CMC board following a board meeting on Thursday, according to documents seen by the Business Daily.
Mr Kibe remains on the board but his position as chairman was taken by Al Futtaim appointee Leonard Hunt; while his business associate Paul Ndung’u also retained his director position.
Al Futtaim is in the final stages of buying out all shares of CMC Holdings for a reported sum of Sh7.5 billion, which will lead to its eventual de-listing from the Nairobi Securities Exchange.
The Dubai Group also appointed Mark Kass as CEO of the auto dealer at the Thursday meeting, replacing Mary Ngige who resigned last month.
While Al Futtaim retained the two businessmen in the board, the changes point to a resolve by Al Futtaim to firm its grip on the company.
Mr Kibe had earlier told Business Daily that he would remain as chairman following the sale of the vehicle dealer, though it is not clear whether this was a gentleman’s agreement rather than a contractual commitment.
The Dubai firm’s earlier intention to retain Mr Kibe as chairman was seen as being aimed at having an insider with knowledge and influence in the local market and regulatory affairs.
The latest boardroom changes mark a turning point for CMC, distancing the company’s association with local investors as Al Futtaim makes its mark on running of the company.
Mr Hunt, the auto dealer’s new chairman, is the head of Al Futtaim’s automotive business. The shake-up has now severed board links that some of the former major shareholders had with CMC.
Appointees
Mr Karbolo and Mr Mbobu were appointees of businessman Peter Muthoka who held the single largest stake in CMC at 24.7 per cent that earned him Sh1.8 billion in the buyout.
The businessman gradually accumulated CMC shares from early 2000s to own nearly a quarter of the firm by the time of its sale.
Another major CMC shareholder Jeremiah Kiereini had nominated Mr Mogere to represent his interests in the auto dealer, where his 12.5 per cent stake earned him Sh947 million in the acquisition.
A wealthy businessman and former head of public service, Mr Kiereini has also been associated with the influential investment vehicle Africa Liaison & Consultant Services that recently transferred shares worth Sh4 billion in CfC Stanbic Holdings.
It was not immediately clear why Al Futtaim chose to retain Mr Kibe and Mr Ndung’u as directors.
Sources said the two were instrumental in the sale of CMC, which included rallying other major shareholders including former attorney general Charles Njonjo to agree to the buyout.
Al Futtaim paid Mr Ndung’u and Mr Kibe more than Sh1 billion for their previous combined interest in the company, estimated at more than 12 per cent.
The duo also own Telkom Kenya’s biggest dealer Mobicom Investments and have interests in a number of listed firms such as Kenya Airways and National Bank.
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