Jul 29 2008
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Al Futtaim acquires stake in AMW
Al Futtaim yesterday notified the Colombo Stock Exchange (CSE) that it had paid in excess of Dh165 million to acquire the 51 per cent holding in AMW held by Associated Electrical Corporation (AEC), an investment holding company.
Shares of AMW, Sri Lanka's only agent for Nissan vehicles and Yamaha motorcycles, closed 2.65 per cent up.
The stake in the listed tyre manufacturer to autos distributor was bought by Al Futtaim group 's wholly-owned subsidiary Al Futtaim Engineering (AFE), which later purchased a further 20 per cent of AMW's shares held by investment holding company John Keells.
In line with the CSE's takeover and mergers code, the offer will go unconditional following official confirmation of acceptances above the 50 per cent threshold. Bob Farrow, Senior GM - Business Development, Al-Futtaim Automotive , who has played a key role in the acquisition, said: "This is a positive development for Al Futtaim and AMW, as well as for Sri Lanka, its economy and for employees."
The acquisition follows Al Futtaim 's recent acquisition of Singapore's prestigious retailer Robinson Group. Farrow said: "We have big plans for AMW. It is an extremely good business that has been one of the cornerstones of Sri Lanka's manufacturing and automotive sector. Al Futtaim will bring new investment and management to build on AMW's achievements since it was founded almost 60 years ago.
"This acquisition is in line with the automotive development division's strategy, with the group's global strategy, and the direction in which CEO Omar Al Futtaim wants to take the business. We see enormous potential to grow AMW's core business and to expand into new sectors and markets. There is strength and depth in the business and we see good reason to be confident about the future of Sri Lanka's economy. This acquisition gives us a foothold we fully intend to build on."
Farrow said AMW brands portfolio is a 'good fit' with Al Futtaim , particularly the Sri Lanka company's range of high volume market leading distributorships such as Maruti, Nissan, Renault, Suzuki, Yamaha, Piaggio, Goodyear tyres, Castrol and BP. In the UAE, Al-Futtaim has brands including Toyota, Lexus, Honda, Chrysler, Dodge, Jeep and Volvo.
Outside the automotive portfolio, AMW's ventures in realty market, including a recently concluded MoU with John Keels Holdings and Finlays, replicates Al Futtaim 's strengths as a real estate developer and construction and infrastructure specialist.
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