Al-Futtaim buyouts over 75 pct of Kenya's CMC shares
17 February 2014, 20:05
Nairobi - The United Arab Emirates-based firm, Al-Futtaim Group said Monday it has so far secured over 75 percent stake of East Africa's key layer in automotive industry, CMC Holdings.
The Group Director for Corporate Development Marwan Shehadeh said the response from the CMC shareholders was "very positive", and by Friday, a total of 79.3 per cent of the shares had been acquired.
Al-Futtaim group is in the process of purchasing 100 percent of issued shares of CMC Holdings, which is listed on the Nairobi Securities Exchange (NSE) at 13 shillings (0.15 U.S. dollars) per share.
CMC shareholders had up to Jan. 24 to sell their shares to Al- Futtaim. On successful completion of the transaction, CMC Holdings is expected to be delisted from the Nairobi Stock Exchange, making the shares illiquid for those who do not take advantage of the offer.
Experts say African countries are becoming more attractive for Arabian Gulf investors. With fast economic growth and a growing middle class, they are becoming more appealing than stuttering European markets.