Tuskys Supermarket shareholders have unanimously approved efforts to secure structured credit facilities amounting to KSh2 billion. In a statement, the board of directors says that an Extraordinary General Meeting held on Monday facilitated the sealing of the external funding.
The meeting convened by Orakam Holding Limited, Tuskys main shareholder, aimed to streamline the ongoing corporate recapitalization and reorganization. Orakam holds 72.5 percent stake in the retailer that will be used to secure the debt.
However, two minority shareholders with a cumulative stake of 27.5 percent sought to sell their stakes to the offshore fund or any other investor.
The supermarket chain has come under cashflows pressure in recent months prompting it to seek external financing. Earlier this month, Tuskys received Ksh500 million as part of the Ksh2 Billion credit line to cover working capital requirements including payment of outstanding staff salaries, pending bills, and rent arrears.
The retailer urgently needs the Ksh2 billion in the short to medium term to meet operating capital obligations. The shareholders pointed to the prospects of working with an equity investor in the future.