Uchumi Supermarkets says it has identified many suitors for stake
Uchumi Supermarkets CEO Mr Julius Kipngetich says the retailer has attracted “many suitors” in its search for a strategic new investor and the board is evaluating bids from both local and foreign parties.
“We have identified several suitors and the whole process will be complete in about 100 days from today” Julius Kipng’etich told Citizen TV on Wednesday Night.
Related; Uchumi To sell ‘Majority’ stake to strategic Investor for Ksh 5Billion
Mr Kipngetich who was appointed seven months ago to help turn around the firm into profitability says the processs will involve selling some non core assets to pay its debts and to restock its branches, adding that its Ngong premises is already sold. He also added that the supermarket is yet to receive some financial aid in form of a “Bailout” from the government which holds a 14 percent stake. Uchumi is currently valued at Ksh 5.8 Billion but with liabilities of about Ksh 6.1 Billion.
Also Read;UBA Kenya lends Uchumi a short loan of Ksh 250M to pay suppliers
Jamii Bora CEO Sam Kimani Resigns from Uchumi Board
Jamii Bora CEO Mr Sam Kimani has resigned from Uchumi Supermarkets board effective 23rd May and will be replaced by Mr Tim Kabiru, subject to confirmation by shareholders.
Mr Kimani sat in the board in the capacity of a representative from Jamii Bora Bank which is the largest shareholder with a 15% stake in Uchumi.
In the statement, no reason was given for Kimani’s resignation but Kenya’s Business Daily reported that he stepped down to avoid conflict of interest due to his other board membership at the Nairobi Securities Exchange.
Mr Tim Kabiru is the Chief Operating Officer of Jami Bora Bank.
Jamii Bora’s 15% stake in Uchumi is set to be diluted by nearly 60 per cent after suppliers of the retail chain agreed to convert Sh1.8 billion debt into equity in an out-of-court settlement.
The debt is part of an estimated Sh3.6 billion owed to suppliers.
Share Price Movement
On Wednesday, Uchumi Supermarkets closed at Ksh 3.90 which is 14.71% above the 52 week low of 3.40 set last week on 18th. Still over the last one year, the share price has shed over 70% of it value considering that the counter was trading at around Ksh 11.00 in December 2015. See chart below;
