Corporate News
Uchumi CEO Jonathan Ciano says Kenya Wine Agencies Holdings sold the
shares in the open market as part of its re-organisation. PHOTO|FILE
By VICTOR JUMA
In Summary
- KWA has relinquished its position as the third-largest local institutional investor in the supermarket chain.
- Besides KWA, several other top investors exited Uchumi’s top shareholders roll including Mumias Sugar Company which had 0.83 per cent and and Goodwill with 4.74 per cent stake.
Kenya Wine Agencies (KWA) Holdings has sold off its Uchumi Supermarkets
stake currently valued at Sh126.5 million, marking the State-owned
corporation’s exit from the retail chain’s top shareholders roll.
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Regulatory filings show that the company, which owns the
Kenya Wine Agencies Limited (KWAL), sold the 4.23 per cent Uchumi stake
in the 10 months to April.
It held 11.2 million shares in May last year but
had sold the entire holding by May this year, relinquishing its position
as the third-largest local institutional investor in the supermarket
chain.
Uchumi CEO Jonathan Ciano told the Business Daily that the government-controlled KWA Holdings sold the shares in the open market as part of its business re-organisation.
KWA has been involved in multi-million shilling deal-making recently, with its shareholders ceding a 26 per cent in KWAL to South African firm Distell Group for Sh855 million.
KWA previously owned 100 per cent of the wine and
spirits marketer, with the Distell deal coming after the South African
firm demanded a stake in the firm that has been distributing some of its
brands in the region.
Besides KWA, several other top investors exited Uchumi’s top shareholders roll including Mumias Sugar Company which had 0.83 per cent and and Goodwill with 4.74 per cent stake.
Mumias was part of a group of Uchumi’s suppliers
who were allotted stakes in the retailer after the supermarket failed to
settle its debts when it went under in June 2006.
Other firms that benefitted from the conversion of Uchumi’s debt into equity were Brookside Dairies, New KCC, Bidco, Unga Limited, Mini Bakeries and Premier Bakeries.
Most of the institutional investors sold their
stakes following Uchumi’s recovery and subsequent relisting in 2011,
exiting at a profit from dividends earnings and capital gains.
New KCC with a 0.28 per cent stake and Premier
Flour Mills (0.21 per cent) are the continuing shareholders listed among
the retailer’s top owners.
The Sh860 million debt-to-equity conversion was
based on a target price of Sh10 per share, opening an opportunity for
significant capital gains from the retailer’s stock performance since
its relisting in May 2011.
Uchumi’s stock has stayed above the Sh10 mark since April 2012, rallying to touch highs of Sh21.75 last year.
It, however, started receding this year after the
retailer released weaker results for the half-year ended December, with
the stock currently trading at Sh11.25
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