No deal on Uchumi yet, says CEO Kipng’etich

Struggling retail chain Uchumi Supermarkets says it has not yet signed any deal with a potential investor to pump in Sh3.5 billion.

Uchumi Chief Executive Julius Kipngetich yesterday said the retailer has been engaging a potential investor for funding, but has not yet put pen to paper with the financier.

“We hereby clarify that Uchumi Supermarkets Plc has been pursuing a strategic investor and the talks are ongoing, however, no deal has been signed yet as indicated by some media outlets,” Mr Kipngetich said in a statement copied to the capital Markets Authority.

READ: Uchumi signs pay deal with staff to end biting go-slow - VIDEO

He however confirmed that discussions were ongoing with an investor who has expressed interest in the company and wants to invest some Sh3.5 billion.

The retail chain was still waiting for regulatory approval, a requirement for all listed firms to make any deal known to the public.

Mr Kipngetich said the retail chain would prioritise the restocking and funding its franchise model once it the cash through.

The retailer has been surviving on supplier goodwill and government bail out after it went under twice, amid heavy debt and stock outs.

The retail chain has also resorted to asset disposal to fund its operations.