Fourteen shareholders, who collectively own 83.14 per cent of the company, have pledged to remain as Marshalls investors even after its delisting from the Nairobi bourse.
The investors also gave the Global Ltd the go-ahead to buyout out minority shareholders at a premium of Sh10.75 per share.
Marshalls is on track to exit the Nairobi bourse on June 19, subject to regulatory approvals.
Marshalls East Africa’s #ticker:MASH stockholders have approved the company’s bid to delist from the Nairobi Securities Exchange #ticker:NSE as part of plans to reposition the business to face financial challenges.
The investors also gave Global Limited, the firm which owns 13.9 per cent of the auto dealer, the go-ahead to buyout out minority shareholders (who do not want to remain part of the delisted firm) at a premium of Sh10.75 per share.
These resolutions were unanimously passed during the firm's annual general meeting Monday, setting Marshalls on track to exit the Nairobi bourse on June 19, subject to regulatory approvals.
“The special resolution was passed by a majority of shareholders exceeding the minimum threshold of 75 per cent of security holders and without objection …from at least 10 per cent of the shareholders,” Marshalls said in a statement Tuesday.
Diminishing fortunes
The loss-making car dealer, which once had an exclusive dealership contract with iconic French car maker Peugeot, has faced hard times in recent years due to an “influx of second hand cars and increased competition.”
The company lost Peugeot’s local franchise contract in 2007 and later Tata, compounding its dwindling fortunes.
Marshalls currently stocks KIA vehicles.
Following the shareholder approval to de-list from the NSE, the offer period for purchase of minority investor shares on a voluntary basis opens Wednesday and closes on June 7.
The result of this share purchase will be announced on June 12 with de-listing slated for a week later.
Fourteen shareholders, who collectively own 83.14 per cent of the company, have pledged to remain as Marshalls investors even after it exits the Nairobi bourse.
