Dubai Al-Futtaim Group bids Sh7.5bn for CMC Holdings
CMC Chairman Joel Kibe (left) and top shareholder Peter Muthoka. Al-Futtaim Group intends to purchase all the shares of CMC through a cash offer at Ksh13 ($0.15). FILE
Motor dealer CMC Holdings has received a Sh7.5 billion buyout offer from Dubai-based company Al-Futtaim Group, in what is likely to see the firm de-list from the Nairobi Securities Exchange.
The takeover proposal —at Sh13 per share—has received endorsement from more than half (50.6 per cent) of CMC’s shareholders, including the top shareholders, Al-Futtaim said in a statement.
The Dubai firm said that post-acquisition, it will introduce more brands at CMC beyond its current stable of Volkswagen, Ford, Mazda, Suzuki, Case New Holland, MAN, UD, Maruti and Case Construction.
“We believe in CMC Group, our first sub-Saharan target, the great brands it sells and the employees behind its success over the years,” said Marwan Shehadeh, an executive at Al-Futtaim.
“We are continuing our expansion drive across Africa and we hope that CMC will be the jewel in the crown of our inroads into this great continent,” he added.
The two companies have filed applications for approval of the deal by the regulators.
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