Inside Politics

Tuskys clinches Sh2b financing deal from Mauritian investors

Wednesday, August 26th, 2020 00:00 |
Dwindling fortunes at Tuskys. Photo/PD/FILE

Lewis Njoka @LewisNjoka

Troubled Tuskys Supermarkets has secured over Sh2 billion financing from a Mauritius-based fund towards strengthening its capital position, the retailer announced yesterday.

Tuskys Chairman, Bernard Kahianyu, said the financing will be subject to the retailer fulfilling some conditions.

“Tusker Mattress board of directors is pleased to confirm that we have signed terms of agreement with a Mauritius-based fund for the provision of a financing facility amounting to just over Sh2 billion subject to fulfilling transaction condition precedents,” Kahianyu said in a statement yesterday. 

“As previously communicated, we wish to reiterate our commitment to resolve the underlying working capital challenges quickly.

This funding will provide the needed impetus to our overall capitalisation journey,” he added.

Kahianyu said the retailer will engage all stakeholders in the coming days to agree on business modalities going forward. 

Last month, owners of the supermarket resolved to sell majority stake to an equity investor in a bid to recapitalise, a move that could see them lose control of the family-owned business.

Tuskys board of directors said that shareholders of Orakam Holdings Ltd, which owns the supermarket, met on July 19 and approved of a decision to sell majority stake to an equity investor.

“The Orakam shareholders gave nod to the acquisition of a majority stake in Tuskys by an equity investor who will further provide strategic leadership for the long term growth of the business and for the benefit of all stakeholders,” Kahianyu said in a statement at the time.

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