Nairobi: October 10, 2014: Uchumi Rights Issue enters
the penultimate stage following approval by the Capital Markets Authority (CMA).
In
a statement CMA said the Authority was satisfied that the disclosures
submitted by the company complied with regulatory requirements
for public offers and listings.
“Submission
by Uchumi is sufficient and contained information that will enable
investors make an informed decision on the Rights Issue,”
the statement reads in part.
Uchumi’s
Chief Executive Officer Dr. Jonathan Ciano said: “We are delighted by
the seal of approval by the CMA and the NSE, I would now
call upon our shareholders to exercise their Rights as we enter this
new and exciting phase of our growth plans.”
The retail chain is seeking additional capital to finance its regional growth and expansion programme as it seeks to consolidate
its position in regional markets. The funds will be used to open new branches as well as refurbish local branches.
“We
plan to open more branches across East Africa in a bid to competitively
position our business and this requires substantial capital
expenditure. We also want to be able to adequately finance working
capital for our subsidiaries with a consequent growth in market share
and sales volumes,” Dr. Ciano said.
The
company has picked Faida Investment Bank as lead transaction adviser,
Equity Bank as sponsoring broker, Hamilton Harris & Matthew
Advocates
as legal adviser, Ernst &Young (auditor), ICDC as the share
registrar, and Hill + Knowlton Strategies as public relations and
advertising consultant.
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