Money Markets
Pedestrians walk past the Treasury building in Nairobi. The mountain of
bad bank loans grew by a whopping Sh13.2 billion in the first three
months of the year. Photo/SALATON NJAU
By Charles Mwaniki
Dubai based Al-Futtaim has paid Sh636 million for the
compulsory acquisition of 48 million shares in CMC, completing the
Sh7.5 billion takeover of the motor dealer. Al-Futtaim told affected
shareholders that they should claim their compensation from KCB, the
paying agent for the offer.
“Payment to remaining shareholders…will be within 10 days of
completing and submitting the duly filled claim form to KCB,” said Al
Futtaim.
The company said it had deposited the funds in the
bank, paving the way for CMC to be delisted from the Nairobi Securities
Exchange where it was quoted for 58 years.
Al Futtaim wired payments to more than 90 per cent
of CMC shareholders who accepted the takeover offer starting April. The
delisting and takeover bid were approved on March 10 at a CMC
extra-ordinary general meeting (EGM) held in Nairobi. Shareholders of
the 8.4 per cent or 48.94 million shares of CMC issued capital did not
accept the offer.
CMC shareholders were bought out at Sh13 per share,
representing a 3.7 per cent discount over the last trading price of
Sh13.5 in September 2011.
The payout brings to an end three difficult years that have seen the firm suffer franchise losses, reduced profits and boardroom wrangles which only ended in February 2013.
The payout brings to an end three difficult years that have seen the firm suffer franchise losses, reduced profits and boardroom wrangles which only ended in February 2013.
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