Mumias Sugar has received Sh1.1 billion from Government through the National Treasury as part of the bailout deal for the troubled sugar miller.
This takes the total funds pumped into Mumias by government to Sh2 billion after releasing a similar amount back in 2015.
Mumias Chairman Dan Ameyo says the money has come at an opportune time as the company restructures its operations.
“Let me take this opportunity to thank the government for this timely intervention that will help Mumias progress in line with our turnaround strategy,” Mr Ameyo said in a statement
Funds from the second bailout tranche will specifically be used for purchasing new equipment, payment of farmers as well as staff rationalization.
The government is the majority shareholder of Mumias with a 20% stake in the listed miller. Part of the restructuring plans includes injection of new capital through a rights issue.
The counter set a new ALL TIME LOW during Wednesday’s trading session when it reached Ksh 1.30. See illustration below;
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