Al-Futtaim bids for Kenya firm

Dubai-headquartered Al-Futtaim group, a leading diversified conglomerate operating through 100 companies across 20 markets, has made public its intention to make a cash offer for the purchase of 100 per cent of issued share capital of the Nairobi Securities Exchange-listed CMC Holdings Limited at Sh13 per share.
EFG-Hermes is acting as final advisor to Al-Futtaim on the transaction.
The takeover proposal has received overwhelming endorsement from 50.6 per cent of CMC’s shareholders, including most of the company’s top shareholders who have undertaken to sell their shares when the offer is made.

This will help the Nairobi-based automotive group to introduce more brands beyond its current stable of Volkswagen, Ford, Mazda, Suzuki, Case New Holland, MAN, UD, Maruti and Case Construction.

“With more than 40,000 employees Al-Futtaim group has significantly expanded its business operations in recent years through a strategic acquisition plan and has entered a number of new territories, increasing its footprint beyond the Gulf Cooperation Council states (GCC) and the greater Middle East to encompass South East Asia and Africa,” said Marwan Shehadeh, Group Director Corporate Development,  Al-Futtaim group.

Once made, the offer would represent a big vote of confidence in the prospects of one of Kenya’s oldest and leading vehicle dealers. Standing at KSh7.5 billion, the deal also represents one of the biggest foreign direct investment inflows into the Kenyan economy in recent times and is expected to highlight the appeal of Kenyan blue chip companies as global firms seek a foothold in the booming African economy.

“We believe in CMC Group, our first sub-Saharan target, the great brands it sells and the employees behind its success over the years. We also respect the heritage of the company and its 65 year-old history in fostering economic development in Kenya,” added Shehadeh.

“We are continuing our expansion drive across Africa and we hope that CMC will be the jewel in the crown of our inroads into this great continent.”

Al-Futtaim group, through its subsidiary Al-Futtaim Auto & Machinery Company (FAMCO), has served a notice of intention to make the takeover to the board of CMC Holdings, which is expected to sit and evaluate the offer.  The offer will be subject to all requisite regulatory approvals and certain transactional conditions.
 

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