According to Kenyan Wallstreet, the Board of directors of Tusker Mattresses Limited (Tuskys) announced that its shareholders have now approved its efforts to achieve recapitalization.
The chairman of the board made it known that shareholders of Tuskys’ corporate body; Orakam Holdings during a recent meeting, approved the bid to secure a strategic investor.
An update from the chairman of the board; Bernard Kahianyu stated that, “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.”
As it stands, the board members alongside a number of transaction advisors are assessing a number of offers. The company had earlier on released a statement promising that it will find a strategic investor by the end of July 2020. One who would be able to help the company actualize its long term growth goal.
The supermarket has also succeeded in reaching an understanding with suppliers. These suppliers will now provide the supermarket with much needed supplies as the business proceeds to finalize its capitalization moves. The supermarket will in turn, guarantee timely payments.
“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.”
Kenya’s competition regulator; the Competition Authority Of Kenya (CAK) confirmed last week, that the retailer paid 2.77 billion Kenyan Shillings to its suppliers. The Competition Authority Of Kenya (CAK) is however, still assessing the Tuskys’ statements, to reaching out to suppliers to hear their grievances.
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