[2008-04-24]  Uchumi finally identifies partner
After seven months of frantic efforts, the search for a strategic equity investor for Uchumi Supermarkets has been identified.

Receiver Manager, Mr Jonathan Ciano, announced the strategic investor will come on board once the advisory committee approves the decision.

He said the company has attracted overwhelming interest from investors and would pick an ideal partner for its turnaround strategy.

The committee, which is chaired by Trade Permanent Secretary, is expected to meet next week to verify the process and decide on the new investor.

"We are on course to bringing on bound a strategic investor. It has taken us this long (seven months) because we want the process to be clean and transparent," said Ciano.

It is, however, not clear whether the transfer of Trade ministry PS Mr David Nalo, who has been the chairman of the advisory committee, to the Ministry of East Africa Community will affect the process.

Dr Silas Njiru is the new PS at the ministry after changes announced on Monday.

On Wednesday, Ciano, who was in a day long meeting with transaction advisors — KPMG, said preparation of an Information Memorandum detailing the company’s past financial dealings and future prospects has been finalised.

Though he could not reveal how much the retail chain hopes to raise from the strategic investor, there were indication that the company requires Sh600 million capital to complete the turnaround strategy.

The need for a strategic investor became paramount after the chains efforts to raise money through a debenture stock failed to excite the current shareholders.

The move raised a mere Sh134 million against a target of Sh650 million.

Last year, the troubled chain that was put under receivership two years ago returned to profitability after it posted net earnings of Sh63 million in the six months to December 2007.

Ciano said the retail chain was gaining ground against its competitors and it is on course towards realising its true value. "Our earning are increasing every month," he added.
Source: Copyright © 2007 Standard Group