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.