Uchumi supermarket in Mombasa. Photo / JOHN CHESOLI Uchumi Supermarket is set to raise Sh3.5 billion through equity capital in the next 120 days as part of its financial recovery strategy.
In a public notice issued to investors last Friday, Uchumi revealed that talks are underway with a potential investor ready to pump in Sh3.5 billion by buying part of its Sh5 billion new shares.
It went on to urge shareholders and other investors to exercise caution when dealing in retailer’s ordinary shares on the Nairobi Securities Exchange (NSE).
In January last year, an investors’ annual general meeting resolved to identify a stable investor ready to pump in Sh5 billion by way of debt capital, convertible debt instruments or equity capital.
The retailer’s chief executive officer Julius Kipngetich revealed that talks with the potential investor commenced on August,1 and hopes to complete all transaction processes in the next 120 days.
‘’I thank all partners and friends of Uchumi who have continuously supported our company to realize this vision by committing both money and time to bring this company back to greatness. We are optimistic that the transaction process will come to a conclusion within the stipulated time or less, which will mark the completion of the last mile of recovery strategy,’’ said Kipngetich.
The funds will be used to restock, pay old debts and build public confidence in the struggling retailer whose employees participated in a national protest to demand their two months salaries in early June.The cash-strapped listed retailer has historically grappled with financial […]