Marshalls EA To Delist From NSE, Minority Investors Offered Premium Buyout Deal

Motor vehicle dealer, Marshalls East Africa Limited has handed in a proposal to delist from the Nairobi Securities Exchange citing “a deteriorating business environment due to the influx of second hand cars and increased competition.”

In the deal, Global Limited – the company’s majority investor with a 13.9% stake has offered to buy out shares of any minority shareholder who would not wish to remain in the unlisted entity at Sh 10.75.

The Sh 10.75 represents a twenty five per cent (25%) premium to the six month volume weighted average price of KSH 8.58 as at 30th March 2017.

“Over the past few years, Marshalls has experienced a deteriorating business environment due to the influx of second hand cars and increased competition. As a result, Marshalls has declared losses for number years. In order to reposition the business to face these challenges, the Board of Directors has recommended that the Company seek to delist from the NSE.” the company said in a statement. “The Delisting will provide the Company with the flexibility and time to restructure its business without prejudicing shareholders. The Delisting will also reduce expenses related to maintaining a listing on the NSE.”

The company also noted that a majority of the investors with a combined stake of 83.14% had expressed interest to remain as shareholders despite the move to delist.