The takeover of auto dealer CMC is set for conclusion through compulsory acquisition of the remaining 8.49 per cent shareholders who did not accept a buyout offer by the Dubai-based conglomerate Al-Futtaim.
The company Monday announced that it had crossed the threshold needed to make a compulsory buyout, all but marking CMC’s de-listing from the Nairobi Securities Exchange (NSE).
Al-Futtaim said that it had received acceptance offers for 533 million CMC shares out the car dealer’s 583 million issued shares representing a 91 per cent acceptance rate.
The 91.5 per cent acceptance level exceeds both the delisting and the compulsory acquisition thresholds which stand at 75 and 90 per cent respectively as set by the Capital Markets Authority, the industry regulator.
“Al-Futtaim will apply the legal provisions available to compulsorily acquire the remaining shares,” said the firm in a statement.
The takeover offer document states that the Al-Futtaim would compulsory buyout the remaining shares if it were to hit the 90 per cent mark.
“If the take-over offer is accepted by shareholders holding at least shares representing 90 per cent of the issued share capital of CMC, Al Futtaim intends to apply the provisions of section 210 of the Companies Act (Chapter 486 of the Laws of Kenya) to acquire the remaining shares,” says the offer document.
Al-Futtaim said that shareholders with 49,465,834 shares or a 8.49 per cent shareholding had not accepted the offer.
This group of shareholders becomes the second set of NSE investors to be compulsorily bought out this year.
Data Dimension made a compulsory acquisition of AccessKenya shareholders in early January after it crossed the 90 per cent threshold.
“Shareholders of AccessKenya Group are hereby notified that Dimension Data Holdings Plc has with effect from January 4 2014 compulsorily acquired the remaining shares that were subject of the notice dated 1 November 2013 issued pursuant to section 210 of the Companies Act, Chapter 486 of the Laws of Kenya,” said AccessKenya in an advert.
AccessKenya set aside Sh305 million for the investors who did accept the offer.
Al-Futtaim said that the next step once it has full ownership will be will be revamping the troubled company.
“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,” said Al-Futtaim’s Automotive president Len Hunt in a statement.