Vehicle dealer Marshalls East Africa has been delisted from the Nairobi Securities Exchange and will revert to private ownership.
The Nairobi Securities Exchange (NSE) yesterday issued a notice ending the company’s listing at the bourse after Global Ltd, which owns 13.9 per cent of the auto dealer, decided to buy out retail shareholders.
Global Limited offered to buy shares from minority shareholders at a price of Sh10.75 which represents a premium of 25 per cent. Marshalls shares have been trading at Sh8.58 a share.
“Notice is hereby given on the delisting of Marshalls (East Africa) Limited from the Nairobi Securities Exchange effective June 20, 2017,” said NSE.
The former Peugeot dealer, which now markets South Korea’s KIA cars, has been struggling for over a decade.
The French car maker cut ties with Marshalls in 2007, ending a 47-year-old partnership.
It also lost distribution rights for India’s Tata, worsening their financial fortunes.
The company incorporated in 1947 blames the influx of second hand cars and increased competition for its declining fortunes, recording a loss of 17.4 million last year and a loss of Sh20.3 million in 2015.
The car dealer believes that delisting will provide the Company with the flexibility and time to restructure its business without prejudicing shareholders.
It will also reduce expenses related to maintaining a listing on the NSE and free the company from being regulated by the bourse and the Capital Markets Authority. The firm joins CMC Motors, Access Kenya and Rea Vipingo that have also left the Nairobi bourse in recent years.