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[2008-05-23] Uchumi’s partner search in top gear
Uchumi Supermarkets’ search for a strategic equity partner is now in top gear.
This comes after the company floated an international tender in search of a suitor, who would fast-track its recovery progress starting August this year.
The retailer is now seeking suitable individuals or investment groups which can inject at least Sh800 million.
Those eyeing a piece of Uchumi will be required to have an investment capacity of at least Sh10 billion.
The amount raised is expected to further reduce the firm’s debts of about Sh950 million owed to two Kenya Commercial Bank and PTA Bank.
Smooth process
Uchumi has been repaying both banks Sh14 million a month since July 2007.
“We expect to get a partner by August if the process goes on smoothly,” said the supermarket’s receiver-manager, Mr Jonathan Ciano, who was appointed in July last year.
His appointment was part of a rescue plan by a government-led taskforce of reviving the indigenous company.
Ever since, Mr Ciano has been in charge of the company’s recovery strategy in a hugely competitive retail chain business.
Uchumi has come from a loss-making streak of Sh751 million, when it was placed under receivership in June 2006, to a loss of Sh256 million in the year ending June 2007.
