[2008-06-25]  Uchumi partner search gains momentum
Firms that bid for strategic partnership with Uchumi supermarket will know whether they will enter the second stage on Wednesday next week.
Uchumi receiver manager Jonathan Ciano said that this will include inviting financial and technical proposals from successful firms.
Speaking during the draw to pick the first winner in a running promotion jointly organised with Reckitt Benckiser, Mr. Ciano said that an assessment of the firms was going on before a decision is taken next week.
He said that next week the advisory committee will then look into the analysis that will be put before it to be able to clear pre-qualification. “We shall then be able to tell them if they have qualified to go to the next level, as it is a competitive situation,” he said.
After that he explained that an information memorandum will be prepared and due diligence conducted on the firms, after which financial and technical proposals will be invited from them.
Last week, Mr. Ciano said eight firms and investors, both local and international, had returned their bid forms from an initial 12 that had expressed interest in buying into Uchumi supermarket.
He said two of those who did not return their forms had bid jointly. Mr. Ciano said barring any interruption, the strategic equity partner for the supermarket that was placed under receivership in June 2006 will be identified by August.
“When they come in they should be able to contribute in the running of Uchumi supermarket so as to help in boosting economic growth.”
The supermarket is seeking to raise KSH800 million capital in the last phase of resuscitating the retail giant that nearly went under following a botched expansion programme that tied-up most of its capital.
Last week Mr. Ciano said the supermarket had paid KSH160 million out of Sh950 million it owes PTA Bank and the Kenya Commercial Bank.
The customer base, he added, has been growing by 30 per cent in the first six months of this year.

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