Shareholders at a Marshalls East Africa Shareholders AGM in Nairobi. FILE PHOTO | NMG
Marshalls East Africa’s
stockholders have approved the company’s bid to delist from the Nairobi Securities Exchange
The
investors also gave Global Limited, the firm which owns 13.9 per cent
of the auto dealer, the go-ahead to buyout out minority shareholders
(who do not want to remain part of the delisted firm) at a premium of
Sh10.75 per share.
These resolutions were unanimously
passed during the firm's annual general meeting Monday, setting
Marshalls on track to exit the Nairobi bourse on June 19, subject to
regulatory approvals.
“The special resolution was
passed by a majority of shareholders exceeding the minimum threshold of
75 per cent of security holders and without objection …from at least 10
per cent of the shareholders,” Marshalls said in a statement Tuesday.
Diminishing fortunes
The
loss-making car dealer, which once had an exclusive dealership contract
with iconic French car maker Peugeot, has faced hard times in recent
years due to an “influx of second hand cars and increased competition.”
The company lost Peugeot’s local franchise contract in 2007 and later Tata, compounding its dwindling fortunes.
Marshalls currently stocks KIA vehicles.
Following
the shareholder approval to de-list from the NSE, the offer period for
purchase of minority investor shares on a voluntary basis opens
Wednesday and closes on June 7.
The result of this share purchase will be announced on June 12 with de-listing slated for a week later.
Fourteen
shareholders, who collectively own 83.14 per cent of the company, have
pledged to remain as Marshalls investors even after it exits the Nairobi
bourse.
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