Regional retailer Tuskys Supermarket shareholders on Tuesday agreed to sell a majority stake of the company in an effort to recapitalise it.
In a statement, Tuskys Chairman Bernard Kahianyu said shareholders of Orakam Holdings Ltd, gave a nod to the acquisition of a majority stake by any equity investor, paving the way for new leadership in the retailer.
“The Orakam shareholders provided their nod to the acquisition of a majority stake in Tuskys by an equity investor who will further provide strategic leadership for the long term growth of the business and for the benefit of all stakeholders,” said Kahianyu.
“Board of Directors together with a team of transaction advisors are currently evaluating the various offers with the aim of concluding the recapitalisation of the business in the shortest time possible.”
According to the Board, the retailer requires immediate capital injection amounting to KSh2 billion.
The approval follows a meeting held on July 9 that brought together the owners of Tusker Mattresses Limited represented by the children of founder Joram Kamau who own Orakam Holdings Limited.
Present at the meeting were seven shareholders: Mary Njoki Kamau, Stephen Mukuha Kamau, Yusuf Mugweru Kamau, Sammy Gatei Kamau, John Kago Kamau, and Kenneth Njeri.
Tusker Mattresses Ltd owns the Tuskys Supermarkets brand, is fully owned by the family of the founder, Joram Kamau, through Orakam Holdings Ltd.
Kahianyu also said the retailer had secured short-term supplier support through the ring-fencing of payments.
“Under this arrangement, suppliers have signed in on a short-term portal that will ring-fence their supplies and ensure timely payment for the same. This option provides a much-needed lifeline for the business and secures a win-win stability option,” the retailer added.
The Competition Authority of Kenya (CAK) last week announced that Tuskys had paid its suppliers KSh2.77 billion in the month of June as part of the debt owed to them.
The remaining debt will be cleared in four months.