Board of directors of Tusker Mattresses Limited (Tuskys) says its shareholders have approved its recapitalization efforts. An update from the board chairman says that shareholders of Orakam Holdings, the supermarket’s corporate body, approved its bid to source a strategic investor in a recent meeting. Tuskys has also secured an understanding with suppliers, who will provide supplies as the business concludes its capitalization efforts.
“During the meeting, the seven shareholders present provided their approval for the progression of an ongoing strategic investor sourcing effort, which is a crucial development and lifeline for the business,” reads an update from board chair Bernard Kahianyu.
Currently, the board members of the company together with a team of transaction advisors are evaluating various offers. An earlier statement from the company promised to find a strategic investor by the end of July 2020, looking to engage any investor who will further its long term growth.
Suppliers to Continue Delivering to Tuskys under New Deal
The supermarket has also developed a short term plan with suppliers who will offer the business merchandise, while still guaranteeing timely payment.
“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.”
Last week, Kenya’s competition regulator confirmed that the retailer paid Ksh 2.77 billion to its suppliers. Further, Tuskys negotiated moratoriums and extension with its suppliers to maintain the flow of supplies to its stores. However, the authority is still scrutinizing the company’s statements, calling suppliers to air their grievances to the agency.