Uchumi turns to investors for more cash

The Uchumi supermarket chain is seeking more money from its shareholders, which is expected to indicate the level of confidence the investors have in the company.

The retailer intends to raise Sh1.5 billion from the three East African states after cross-listing its shares in Uganda, Tanzania and Rwanda.

Uchumi has appointed Faida Investment Bank as the lead transaction advisor in the two processes.

The company needs more funds to exploit the opportunities from the expanding economies in the region.

Uchumi chief executive officer, Mr Jonathan Ciano said the supermarket chain is poised for growth after paying its debt amounting to Sh2.2 billion.

Equity Bank is the receiving bank while Hamilton Harrison& Mathews Advocates are legal advisors. Ernst&Young are reporting accountants while Funguo Registrars are the share registrars.

The supermarket plans to open 13 new branches in the next one year in the region.

“We announced our intention to raise additional funds a few months ago and we are keen to accomplish this process successfully by end of the calendar year.

“This requires we put in a competent professional team that will engage various stakeholders including regulators, shareholders and public in the East African region at various stages,” Mr Ciano said.

“We are confident we have a competent team to assist us achieve this goal within the stipulated time.”