As Nakumatt continues to sort their current financial situation Tuskys supermarket has stepped up its plans to bail out the retailer chain.
A new proposal involving the two retailers could see Tuskys end up with a 51 per cent stake in Nakumatt.
“The intention is for Tuskys to take up the majority stake of 51 per cent because that then gives them a measure of control. This preliminary arrangement, once it receives the nod of the regulator will entail, Tuskys taking over management of Nakumatt so that effectively you have good management, you have finances to operate and pay the obligations going forward,” Nakumatt says in a report filed in court through their lawyer James Kamau.
According to a report released by Nakumatt, the deal could be finalized by December this year and could see the replacement if Nakumatt CEO Atul Shah.
“Under the terms of the proposed preliminary agreement, Tuskys shall among other things provide certain management services to Nakumatt, including procurement and inventory management. Robust governance structures will be implemented and independent directors and a new CEO and CFO appointed.”
Nakumatt Supermarket is yet to settle a Sh40 million debt with its creditors and the proposed deal would see Tuskys determine which of the retailers outlets would be shut down.
The Competition Authority of Kenya (CAK) is yet to approve the proposal which has been reported to be a buyout instead of a merger.
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