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Local retail chain Tusker Mattresses popularly known as Tuskys Supermarket says its shareholders have approved the acquisition of a majority stake in the business by any equity investor.
In a statement, Tuskys Supermarkets chairman Bernard Kahianyu, said shareholders of Orakam Holdings – the company that owns Tusker Mattresses Limited, have said the equity investor will be required to provide strategic leadership for the long-term growth of the supermarket’s business.
“Through this engagement effort, TML has secured a suppliers’ commitment to avail supplies for sale pending the conclusion of the capitalization effort. 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,” said Tuskys chairman.
Sources close to the transaction advisors say the supermarket is looking to raise at least Ksh6 billion shillings to recapitalise its business as the retail chain faces challenges in paying its suppliers.
Last week, the Competition Authority of Kenya indicated that Tuskys Supermarkets had made payments to suppliers to the tune of Ksh2.77 billion during the month of June, as per the Authority’s directive.
“The Orakam Shareholders provided their nod to the acquisition of a majority stake in TUSKYS by any equity investor who will further provide strategic leadership for the long-term growth of the business and for the benefit of all stakeholders. The TML Board of Directors together with a team of transaction advisors are currently evaluating the various offers with the aim of concluding the recapitalization of the business in the shortest time possible.”
The supermarket is expected to end its search for a strategic investor by Friday, July 31, 2020.