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VENTURES AFRICA – UAE largest operating conglomerate, Al Futtaim Group has finally acquired 79.3% shares of CMC Holdings, a Kenyan automobile distributor, valued at about Sh7.5 billion ($86.5 million).
According to Business Daily, the Group stated that shareholders of CMC finally decided to relish control of the company and sell their shares on Friday last week.
On several occasions, Al Futtaim has unsuccessfully tried to convince CMC shareholders to accept its takeover bid, a process that started since September last year and was supposed to close on January 24, but was delayed till February 14.
Although a major milestone for the Dubai-based company, it still has to convince the minority shareholders to relinquish the remaining 10.7% since it has no intention of having sharing ownership of the auto dealer company.
“We are definitely on track to successfully conclude this deal. We expect even more shareholders to sell their shares to us before February 18 when the offer closes,” Marwan Shehadeh, Group Director, Corporate Development Al-Futtaim said
With the acquisition of the majority shares, the Dubai firm is in a position to complete the takeover process and can push on with plans to de-list from the Nairobi exchange, a decision that could not have been taken without the acquisition of at least 75 percent ownership.