Troubled Supermarket Chain, Tuskys, is seeking to sell a majority stake to a private equity firm and an undisclosed foreign retailer as it struggles to stay afloat.
The rescue plans were disclosed by a transaction adviser and the Competitions Authority of Kenya which is supervising the company’s settlement of supplier’s debts running into billions of shillings.
“The shareholders of Tuskys have communicated that they are also exploring other funding options, including seeking a strategic investor by July 31, 2020,” the CAK said in a statement Monday.
The regulator said that should another investor apply to acquire a stake in the Supermarket chain, the review of such a case would be fast-tracked.
“The Authority took note of these initiatives and has thereof committed that, if the retailer opts to seek a strategic investor, the Authority shall within 14 days, and in accordance with the provisions of the Competition Act, consider and issue a determination upon submission of a merger/acquisition application,” the CAK said.
The Transaction adviser pointed at the retailer’s preference to sell the stakes to a PE firm and an operator of a major Super Market.
“The discussion is around a majority stake and we are looking at PE fund together with an operator of a major supermarket,” said the adviser who sought anonymity.
For some months now, the shelves at Tuskys have been going empty, inviting speculations into the retailer’s relationship with suppliers. Last week, the New KCC suspended Supplies to the supermarket citing high amounts of accrued debts.
A Director at Tuskys confirmed the discussions to sell a stake of the Chain, adding that it was at a delicate stage.