‘Tuskys Has Not Made a Profit Since 2012’ Says Shareholder

Yusuf Mugweru, a shareholder of Tuskys Supermarket with a 17.5 percent stake, has objected to the proposed partnership between Nakumatt and Tuskys through his lawyers. The objection, which was based on internal wrangles among shareholders, was written to the Competition Authority of Kenya (CAK).

In November last year, Mugweru had protested against dealings between the two retailers when Tuskys requested CAK for a merger approval. In response to this protestation, CAK suggested that Tuskys should solve its internal problems first if it wanted its merger request considered.

However, the two supermarkets were asked to make fresh applications since the original ones were flawed. The new applications now propose a regulatory exempt deal where Tuskys will offer Nakumatt credit and management services instead.

“Indeed both the said shareholders and their advocates have treated our client with utter contempt and have to date refused to provide our client with any information regarding the negotiations with Nakumatt Holdings Ltd,” Mugweru’s lawyers stated.

Interestingly, Mugweru also claims that Tuskys Supermarket has not made a profit since 2012. He is of the opinion that Tuskys does not have the ability to pull Nakumatt out of its financial crisis.

In January, the court ordered Peter Obondo Kahi to be appointed as Nakumatt’s administrator in accordance with Section 563 of the Insolvency Act. Obondo has since assigned Tuskys Supermarket the role of managing Nakumatt, a decision that the regulator is yet to approve.

Mugweru’s lawyers will re-file their client’s protests within a 30-day period.


-From Kenyawallstreet.com