Tuskys Shareholders will lose ownership in Ksh2 billion capital injection deal with Mauritius-based investor, if the retailer defaults on the loan.
The unnamed investor, who has already disbursed Ksh500 million to the retailer, wants investors to commit their shares, in case they default.
Tuskys brand has already summoned a shareholder meeting for September 28 to approve the use of the shares as security for the debt.
“A notice has been sent for shareholders of Orakam (the holding company for Tuskys) on September 28, 2020 to validate negotiations of receiving $20 million (Ksh2.1 billion) from an offshore fund,” read the notice in part.
Stephen Mukuha, Sammy Gatei, Yusuf Mugweru and George Gachwe each own a 17.5 percent stake in Orakam while John Kago, Mary Njoki and Kenneth Njeri hold a 10 percent stake each.
In August, Tuskys signed a Ksh2 billion deal with an undisclosed Mauritius based fund to inject the much needed capital to the troubled retailer.
“This funding will help alleviate our current capital constraints impacted by Covid-19 and further reposition the business for increasing stakeholder’s value,” read a statement by Tuskys chairman Bernard Kahianyu.
In July, Tuskys shareholders agreed to sell a majority stake of the company and have been awaiting the acquisition of an investment suitor.
Children of Tuskys Joram Kamau among them Yusuf Mugweru, Mary Njoki, Sammy Gatei, Stephen Mukuha, John Kago and George Gashwe have been fighting for the control of their father’s company, something though to have rocked the stability of the retailer.