Tuesday, June 17, 2014

Al-Futtaim pays minority CMC shareholders

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.

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