@DailyNation

Marshalls gets Sh824m from vehicle assembly plant sale

5 months ago, 16 Jan 10:02

By: Victor Juma

Marshalls East Africa, which was delisted from the Nairobi Securities Exchange #ticker:NSE last year, has earned Sh824 million from the sale of its 50 per cent stake in Mombasa-based Associated Vehicle Assemblers (AVA) to Simba Corporation. A source familiar with the transaction told the Business Daily that the deal was recently concluded, giving Simba full ownership of the assembler. READ: Simba Corp CEO appointed new executive chair The parties had not disclosed the value of the deal when it was first announced. “Marshalls was paid $8 million (Sh824 million) for the 50 per cent AVA stake,” the source said. The amount is a windfall for shareholders who decided to remain in the struggling company even as it went private. Marshalls, which now sells a few KIA cars in a year, said it decided to delist in order to gain time and flexibility to reorganise its business effectively. Marshalls said it would also benefit from elimination of costs associated with maintaining a listing on the Nairobi bourse. READ: Marshalls exits Nairobi exchange after CMA approval ALSO READ: Marshalls faces Sh1.2m asset auction Future dividends Prior to going private, the company told shareholders their rights will remain the same “including participation in any future dividends declared by the company.” One of Marshalls’ significant shareholders, Global Limited, had offered to buy out minority shareholders on a voluntary basis ahead of the stock market exit. Marshalls has struggled financially since losing the Peugeot franchise deal in 2007, with sales plummeting to less than Sh100 million in recent years. For Simba, the buyout of Marshalls at AVA gives it full control of one of the country’s three main vehicle assemblers. Thika-based Kenya Vehicle Manufacturers and Nairobi-based Isuzu East Africa are the two other main plants. AVA offers motor vehicle assembly services on a contract basis. Its current clients include Toyota Kenya and dealers of Scania as well as Tata brands.
Read More


Category: topnews news business

Suggested

1 hours ago, 18:30
@CITIZENTV - By: Benjamin Muriuki
Relief for Nairobi residents as Ndakaini Dam nears full capacity

Nairobi residents, who have been grappling with water rationing, can now heave a sigh of relief after the County Government announced improved water supply. ...

Category: topnews news
1 hours ago, 18:22
@DailyNation - By: Manase Otsialo
Reprieve as Elwak Airstrip set to resume operations

The airstrip in Mandera was closed over security concerns. ...

Category: topnews news
1 hour ago
@TheStar - By: Jane Cherotich
Busia budget committee disbanded after accusing MCAs of bribery

The Busia assembly's Budget and Appropriations Committee was disbanded on Wednesday following a demand by MCAs.The committee had been under the stewardship of Nangina MCA John Obwogo. It was disbanded ...

Category: topnews news
43 minutes
@TheStar - By: Daily Mail @mailo ...
Senegal coach's intense celebrations makes him 'meme of the World Cup'

Senegal's coach Aliou Cisse's celebration when his team scored the winning goal against Poland in their World Cup opening game has become an internet sensation.When M’Baye Niang put Senegal up 2-0 in ...

Category: topnews news
1 hour ago
@TheStar - By: Rita Damary
40 gambling machines set ablaze in Nakuru Town West

More than 40 gambling machines impounded in Nakuru Town West have been set ablaze by county administrators.The machines were seized in the ongoing crackdown ordered by Interior Cabinet Secretary Fred ...

Category: topnews news
2 hours ago, 17:55
@CITIZENTV - By: Agnes Amondi
Guikan nets hatrick in Gor rout of Kenpoly

Guikan nets hatrick in Gor rout of Kenpoly ...

Category: topnews news sports

@DailyNation

Marshalls gets Sh824m from vehicle assembly plant sale

5 months ago, 16 Jan 10:02

By: Victor Juma
Marshalls East Africa, which was delisted from the Nairobi Securities Exchange #ticker:NSE last year, has earned Sh824 million from the sale of its 50 per cent stake in Mombasa-based Associated Vehicle Assemblers (AVA) to Simba Corporation. A source familiar with the transaction told the Business Daily that the deal was recently concluded, giving Simba full ownership of the assembler. READ: Simba Corp CEO appointed new executive chair The parties had not disclosed the value of the deal when it was first announced. “Marshalls was paid $8 million (Sh824 million) for the 50 per cent AVA stake,” the source said. The amount is a windfall for shareholders who decided to remain in the struggling company even as it went private. Marshalls, which now sells a few KIA cars in a year, said it decided to delist in order to gain time and flexibility to reorganise its business effectively. Marshalls said it would also benefit from elimination of costs associated with maintaining a listing on the Nairobi bourse. READ: Marshalls exits Nairobi exchange after CMA approval ALSO READ: Marshalls faces Sh1.2m asset auction Future dividends Prior to going private, the company told shareholders their rights will remain the same “including participation in any future dividends declared by the company.” One of Marshalls’ significant shareholders, Global Limited, had offered to buy out minority shareholders on a voluntary basis ahead of the stock market exit. Marshalls has struggled financially since losing the Peugeot franchise deal in 2007, with sales plummeting to less than Sh100 million in recent years. For Simba, the buyout of Marshalls at AVA gives it full control of one of the country’s three main vehicle assemblers. Thika-based Kenya Vehicle Manufacturers and Nairobi-based Isuzu East Africa are the two other main plants. AVA offers motor vehicle assembly services on a contract basis. Its current clients include Toyota Kenya and dealers of Scania as well as Tata brands.
Read More

Category: topnews news business

Suggested

1 hours ago, 18:30
@CITIZENTV - By: Benjamin Muriuki
Relief for Nairobi residents as Ndakaini Dam nears full capacity

Nairobi residents, who have been grappling with water rationing, can now heave a sigh of relief after the County Government announced improved water supply. ...

Category: topnews news
1 hours ago, 18:22
@DailyNation - By: Manase Otsialo
Reprieve as Elwak Airstrip set to resume operations

The airstrip in Mandera was closed over security concerns. ...

Category: topnews news
1 hour ago
@TheStar - By: Jane Cherotich
Busia budget committee disbanded after accusing MCAs of bribery

The Busia assembly's Budget and Appropriations Committee was disbanded on Wednesday following a demand by MCAs.The committee had been under the stewardship of Nangina MCA John Obwogo. It was disbanded ...

Category: topnews news
43 minutes
@TheStar - By: Daily Mail @mailo ...
Senegal coach's intense celebrations makes him 'meme of the World Cup'

Senegal's coach Aliou Cisse's celebration when his team scored the winning goal against Poland in their World Cup opening game has become an internet sensation.When M’Baye Niang put Senegal up 2-0 in ...

Category: topnews news
1 hour ago
@TheStar - By: Rita Damary
40 gambling machines set ablaze in Nakuru Town West

More than 40 gambling machines impounded in Nakuru Town West have been set ablaze by county administrators.The machines were seized in the ongoing crackdown ordered by Interior Cabinet Secretary Fred ...

Category: topnews news
2 hours ago, 17:55
@CITIZENTV - By: Agnes Amondi
Guikan nets hatrick in Gor rout of Kenpoly

Guikan nets hatrick in Gor rout of Kenpoly ...

Category: topnews news sports
Our App