Dubai dealer demands board seats before CMC takeover [Business Daily (Kenya)]
(Business Daily (Kenya) Via Acquire Media NewsEdge) The board of CMC Holdings is set for a shake-up after a Dubai firm seeking to buy the auto dealer sought the resignation of the current directors before closing the deal.
Al Futtaim said one of the conditions of the acquisition is the resignation of CMC's directors five days before the close of the offer period, which is yet to be made public.
"If required by Al Futtaim, CMC procuring letters of resignation, at least five days before the offer period closes, from some or all the directors of CMC," Al Futtaim said in an offer statement.
The Dubai firm added that the advance resignations will allow it to restructure CMC's board immediately it receives approvals from the company's shareholders controlling at least 75 per cent stake.
Fulfilling the condition will give Al Futtaim full control of the auto dealer's board after the transaction, with the multinational appearing open to retain a few of the current nine-member board.
Al Futtaim has offered to acquire CMC at Sh13 per share, which is four per cent lower than the company's last trading price of Sh13.5. The Dubai-based firm said acquisition of CMC will help it to expand into the local and regional auto market.
(READ: Dubai Al-Futtaim Group bids Sh7.5bn for CMC Holdings)
The buyout will see CMC investors unlock the value of their shares that have remained suspended since September 2011.
CMC's chairman Joel Kibe on Friday told the Business Daily that he will retain his position after the buyout, adding that Al Futtaim is free to engage with other directors individually.
"I will re
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