The majority shareholding of Associated Motorways changed hands with Associated Electrical Corporation disposing of its shares to Dubai based Al-Futtaim for over Rs.7 billion. The 20 percent share held by John Keels holdings was also included in this transaction. In addition to assembling of the Maruti locally, Al-Futtaim will strengthen AMW through its involvement in electronics, retail, services, insurance, industrial and real estate involvements.

AMW which is a family company in existence for nearly 60 years, had visualized the next phase of development, which necessitated a huge capital infusion.

DFCC Stockbrokers acted for both buyer and seller in this transaction which was one of the largest ever on the CSE.

All employees of AMW become part of a multinational group with prospects of assignments in any of the nine countries that Al-Futtaim operates. This will enhance their skills and economic prosperity.

The recently concluded MOU with John Keells Holdings and Finlays for real estate development fits in well with Al-Futtaim's strength as a real estate developer and road, construction and infrastructure specialist.

The latest development undertaken by Al-Futtaim is the Dubai Festival City, comprising 1600 acres stretching along four kilometres of the Dubai Creek shoreline. This city comprises 550 shops, 90 restaurants, 12 screen cinema and family entertainment centres and will have 70,000 residents and 2500 hotel rooms.

AMW is on the threshold of making several large investments including an automotive assembly project and a proposed real estate project.

The stage had been reached for AMW to be transformed into a multinational corporation and the taking over of the majority shareholding by Al-Futtaim, after due diligence, is most opportune, Ajita de Zoysa added.