By Luke Anami
Uchumi Supermarkets will lift receivership by February 1, Jonathan Ciano, Uchumi’s Chief Executive Officer has said.
Shareholders will meet on the January 29 at an Annual General Meeting (AGM), where the process of raising additional equity through a 10 per cent convertible shareholders’ debenture will be concluded.
The success of this exercise will lead to lifting of receivership and a subsequent re-listing of the company’s shares in the Nairobi Stock Exchange(NSE), thereby crystallising the objective of "Uchumi Rescue Plan" (URP).
Uchumi Hyper Ngong Road, Nairobi. Inset, Mr Jonathan Ciano, Uchumi receiver-manager and Chief Executive Officer. PHOTO: MARTIN MUKANGU/ STANDARD |
Re-join nse
"February 1 is the proposed date of lifting the receivership. We will then apply to re-join the Stock Exchange this year," he said.
The Uchumi Supermarkets has been making profits following the revamping of its management and increased customer base.
The transformation of the chain stores, under the URP has continued in the last three years with emphasis on "reinvented Uchumi" for turnaround.
Business performance has continued to improve in the third year running with the on-going implementation of the URP during 2008/9, in spite of the challenging environment.
This has proved to be a turning point in profitability for Uchumi since 2006 when a receiver moved in.
On local expansion, he said the chain intends to open a branch in Kericho, Embu and in Nairobi’s Eastlands by March," he said.
Uchumi Uganda has become profitable and will soon be opening a large shopping Mall in Kampala by March this year, he added. Ciano said an investor intends to open Uchumi Tanzania in June, this year.
Mr Ciano reiterated that Uchumi will not repeat her past mistakes during their expansion programme.
Meanwhile, Ciano assured suppliers that they would be receiving their payments within a maximum of 14 days after delivery. He said once the company was back at the NSE, it would become a formidable force within East Africa.
