Tuskys on Tuesday denied that one of it seven sibling shareholders has blocked the attempted sale of some of the company’s stake over lack of transparency in the management of the retailer’s finances.
In a press statement, Tuskys board of directors stated that all seven siblings held a board meeting on July 19 at a Nairobi Hotel where the seven shareholders gave their approval for the progression of the ongoing strategic investor sourcing efforts that have so far attracted a private equity fund and an international retailer interested in acquiring a majority stake in Tuskys.
According to the statement, all seven shareholders; Mary Njoki Kamau, Stephen Mukuha Kamau, Yusuf Mugweru Kamau , Sammy Gatei Kamau, John Kago Kamau, George Gashwe Kamau and Kenneth Njeri attended the meeting.
“The shareholders provided their nod to the acquisition of a majority stake in Tuskys by any equity investor who will further provide strategic leadership for the long-term growth of the business and for the benefit of all stakeholders,” read the statement.
According to the statement, Tuskys’ board with the help of transaction advisers is currently evaluating the various offers with the aim of concluding the proposed offloading off stake within the shortest timeframe possible.
The board also claimed that it had secured a suppliers’ commitment to avail supplies for sale pending the completion of the stake sale.
A huge chunk of Tuskys suppliers have stopped stocking the retailer over unpaid bills which stood at Ksh1.2 billion in June. New KCC is one of the local companies that have halted supplies.
“I wish to confirm that all the stakeholders are committed to an amicable resolution of the capital strain facing this business. No effort will be spared to facilitate a swift resolution, and we wish to implore all stakeholders to desist from engaging in step back antics that can erode gains already made,” said Board Chairman Bernard Kahianyu in the statement.
Boardroom Divisions
However, despite the retailer displaying a united front, cracks have emerged between the sibling shareholders that could block the proposed sale of a majority stake.
Mr. Yusuf Mugweru who is listed as having attended the meeting has already vowed to block the sale stating that wrangles among the company’s shareholders are yet to be ironed out.
Mr. Mugweru who owns a 17.5 percent stake in Tuskys maintains that his brothers are yet to account for some Ksh1.6 billion that was the subject to a court suit and is also demanding a forensic audit of the store’s accounts covering the past eight years.
“They reached out to us last Sunday to support the share sale, but we have declined unless past problems are resolved,” Mr. Mugweru’s lawyer, Philip Murgor told journalists last week.
“A transaction in the nature of a buyout cannot be contemplated, without the express and written approval of all shareholders. Our client has not consented or approved such a transaction,” added Mr. Murgor.
