Kenyan retailer Tuskys kick offs Nairobi Stock Exchange listing process

KENYA – Kenya’s leading retail chain, Tuskys has kicked off its listing process on the Nairobi Securities Exchange (NSE) and has started searching for transaction advisors as it eyes a September 2020 listing. The retailer, which also has business in Uganda has been incubated into the IBUKA program of the Nairobi Securities Exchange in a bid to accelerate its listing process, a report by KBC reveals. Tuskys Supermarkets Chief Dan Githua says the company is targeting to list on the bourse in 2020 in a bid to raise funds for…

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Tuskys takes over management of Nakumatt’s operations

KENYA – Nakumatt Holdings Administrator Peter Kahi has announced the appointment of Tusker Mattresses Limited as the new managers for the troubled retailer. Mr Kahi said in a statement Friday that the appointment, which is subject to regulatory approvals, will see Tuskys assuming operations management aspects for the troubled retailer. To that effect, Tuskys and Nakumatt have submitted a fresh application to the Competition Authority of Kenya (CAK) asking to be allowed to partner in a rescue plan for the supermarket chain mired in debt. Mr Kahi said he will…

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Choppies builds US$200m war chest for branch expansion

KENYA – Botswana’s Choppies plans to open between 20 and 25 branches in Kenya, as it races to take advantage of the market gap created by woes facing Nakumatt and Uchumi. The retailer, which is largely a budget store with operations in seven African countries says it has Sh20 billion (US$200m) to pump into its expansion in Kenya in the next three months. The firm says it will give a major facelift to its 11 branches it bought from Ukwala, and convert most of them into convenience and express stores. It will also be moving into the middle…

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Tuskys faces probe over Nakumatt stocking plan

KENYA – The competition watchdog is investigating a deal in which supermarkets chain Tuskys is funding the restocking of troubled rival Nakumatt for possible breach of anti-trust regulations. Tuskys on Saturday announced that it had started restocking two of Nakumatt’s prime Nairobi outlets with the intention of including even more stores across the country. Sources familiar with the matter indicate that the Competition Authority of Kenya (CAK) is investigating the deal between the two rival retailers for what could amount to collusion by competitors. CAK director-general Wang’ombe Kariuki has repeatedly…

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Despite setbacks, Kenyan supermarket sector amongst best in Africa

KENYA – Kenya’s retail sector is still among the most attractive for long-term investors in sub-Saharan Africa despite cash flow challenges that have left giant Nakumatt Holdings on the brink of collapse, a new report has suggested. The interest is largely fuelled by the sector’s growth. It has outperformed the economy in the last five years due to rising households’ disposable income, analysts at financial advisory firm StratLink said in a monthly update. “With a formal retail penetration estimated at 30 per cent, ahead of peer economies such as Nigeria…

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Tuskys to guarantee Sh3bn Nakumatt debt as part of merger deal

KENYA – The battle to save Nakumatt Supermarkets yesterday took a new turn after rival Tuskys offered to inject Sh650 million into the troubled retail chain and recurring payment guarantees of between Sh1.5 billion and Sh3 billion for the outstanding debt. The offer is subject to the Competition Authority of Kenya (CAK) approving a takeover bid by Tuskys. Tuskys, which has expressed interest in acquiring a 51 per cent stake in Nakumatt, now says injection of the funds and issuing of guarantees to suppliers should enable the troubled retailer to…

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Nakumatt, Tuskys could list on stock exchange after merger

KENYA – Regional retailer Nakumatt and its competitor Tuskys could list on the Nairobi Securities Exchange (NSE) if their proposed merger is approved and they successfully execute their new business strategy for at least two years. A joint media announcement this week said that Tuskys, Kenya’s second largest retail chain, is coming to the rescue of Nakumatt, after the two family-owned retailers announced that they were exploring options for synergies, co-operation and business integration. “Such an arrangement will include strengthening and streamlining management, acquisition of assets and eventual merger of the entities.…

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