Tuskys Supermarket aims for a strategic investor by end of July
Shareholders of Tuskys Supermarkets have indicated that they are in the race to bring on board a strategic investor by the close of July.
The retail chain’s shareholders have said they are also exploring other funding options to help address its financial constraints which have resulted in payment delays to suppliers.
Tuskys had first indicated its intention to onboard a strategic investor as it sort to better its capital structure ahead of a potential listing on the Nairobi Security Exchange (NSE) in August 2019.
“The first thing would be to improve our internal governance structure. We would need to ensure that our structure can withstand public scrutiny upon listing. Our goal would be to present a well-capitalized company to investors as we wouldn’t want to be confronted by the suggestion that we are only listing for money,” Tuskys CEO Daniel Githua said.
The Competition Authority of Kenya (CAK) said it shall within fourteen days, in accordance with the provisions of the competition act, consider and issue a determination upon submission of a merger/acquisition application, should the retailer find a strategic investor.
The supermarket has committed to further progressively settle all outstanding invoices over a period of four months.
Documents by the retailer have already been provided, indicating payments that have been ade to suppliers amounting to Ksh2.77 billion in June 2020 as per the CAK’s order.
“The Authority continues to interrogate the financial statements, and management accounts availed by Tuskys, we call upon suppliers who may be aggrieved, and have not presented their matters to the CAK, to continue doing so. This will enable the Authority to establish Tusky’s accurate debt portfolio,” CAK added.
CAK has, over the past 30 days, held four meetings with Tuskys to review the documentation submitted and interrogate its proposed debt settlement plan.
Tuskys is further entangled in a dispute with its unionised staff over planned pay cuts- a matter which has ended up in the Labour Relations Court. The retailer is expected to hold a consultative meeting with the employees on Thursday to resolve the impasse.