UCHUMI CHIEF EXECUTIVE JULIUS KIPNG’ETICH. FILE PHOTO | NMG
Summary
- The retail chain was still waiting for regulatory approval, a requirement for all listed firms to make any deal known to the public.
- Mr Kipngetich said the retail chain would prioritise the restocking and funding its franchise model once it the cash through.
- The retailer has been surviving on supplier goodwill and government bail out after it went under twice, amid heavy debt and stock outs.
Struggling retail chain Uchumi
Supermarkets says it has not yet signed any deal with a potential
investor to pump in Sh3.5 billion.
Uchumi Chief
Executive Julius Kipngetich yesterday said the retailer has been
engaging a potential investor for funding, but has not yet put pen to
paper with the financier.
“We hereby clarify that
Uchumi Supermarkets Plc has been pursuing a strategic investor and the
talks are ongoing, however, no deal has been signed yet as indicated by
some media outlets,” Mr Kipngetich said in a statement copied to the
capital Markets Authority.
He
however confirmed that discussions were ongoing with an investor who
has expressed interest in the company and wants to invest some Sh3.5
billion.
The retail chain was still waiting for
regulatory approval, a requirement for all listed firms to make any deal
known to the public.
Mr Kipngetich said the retail chain would prioritise the restocking and funding its franchise model once it the cash through.
The
retailer has been surviving on supplier goodwill and government bail
out after it went under twice, amid heavy debt and stock outs.
The retail chain has also resorted to asset disposal to fund its operations.
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