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Mon 3 Mar 2014 03:26 PM

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Dubai's Al Futtaim close to $87m deal for Kenyan car retailer

Company says it plans to buy CMC Holdings after 91% of shareholders accept offer

Dubai's Al Futtaim close to $87m deal for Kenyan car retailer
(AFP/Getty Images - for illustrative purposes only)

Al-Futtaim Group is close to taking control of Kenyan car retailer CMC Holdings after 91 percent of shareholders accepted its 7.6 billion shilling ($87.91 million) offer, the Dubai-based company said on Monday.

Gulf Arab companies are boosting their investment in Africa's vast lands and untapped resources, attracted by rapid economic growth, the rise of a free-spending middle class, and a sense that much of the continent is becoming better governed and more stable politically.

The 91 percent acceptance means Al-Futtaim will hold 533 million shares in CMC, which distributes Ford, Suzuki and Volkswagen vehicles among other brands in the region.

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