Al Futtaim Group, a UAE conglomerate, has acquired a full 79.3% of shares in CMC Holdings, which in turn owns a 33% stake in the prominent automobile distributor Kenya Vehicle Manufacturers (KVM), in a deal valued confirmed to be worth around $86.3 million (Sh7.5 billion).
The Dubai-based group has stated that CMC’s majority shareholders agreed to sell their shares on the 21st February in long-awaited conclusion to negotiations, though according to Kenya’s Business Daily Al Futtaim intends to continue to pursue the remaining stakeholders.
Al Futtaim began the process of trying to convince CMC shareholders to accept its takeover bid in September, making several offers in negotiations that were expected to close on the deadline of January 24, but which were in fact subsequently extended until February 14.
“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,” noted Marwan Shehadeh, Al Futtaim Group director for corporate development, told the daily.
In an earlier statement by CMC’s acting MD Mary Ngige explained that following Al Futtaim Auto & Machinery’s acquisition of at least 75% of the Kenyan Holding it was the intention to delist the firm, a prospect that limits the options for remaining minority shareholders.
However, Al Futtaim Group will continue to operate CMC and all of its subsidiaries, including Cooper Motor Corporation, Uganda, and Hughes Motors and Hughes Agricultural, Tanzania.
The Kenyan government still holds the largest portion of shares in KVM at 35%, while the remainder of stock are held DT Dobie, under the acquisition of the Toyota Tshusho Corp.