The takeover offer for CMC Holdings Limited by the Al-Futtaim group has officially opened, the firm said in a press statement.

The opening of the offer now allows existing shareholders to sell their stakes to the Dubai based firm.

“We are pleased for this opportunity to add value and synergy to East Africa’s automotive industry through CMC Holdings, a firm with rich heritage, just like the Al-Futtaim group. This is our first investment in sub-Saharan Africa, and we are looking forward to working with CMC for the long haul,” said the Group Director of Corporate Development at the Al-Futtaim group, Marwan ShehadehMr Shehadeh.

Al-Futtaim group made a Sh7.5 billion buyout offer in September in what is likely to see the firm de-list from the Nairobi Securities Exchange.

The acquisition will be made through its subsidiary Al-Futtaim Auto & Machinery Company (FAMCO).

Mr Shehadeh said the takeover proposal has received endorsement from 50.6 per cent of CMC shareholders, who have undertaken to sell their shares when the offer opens.

The opening of the offer follows the requisite regulatory approval from the Capital Markets Authority (CMA) for this stage of the deal.

Shareholders of CMC Holdings Limited have up to January 24th 2014 to sell their shares to the Al-Futtaim group.