In a statement, the board of directors says that an Extraordinary General Meeting held on Monday facilitated the sealing of the external funding.

The meeting convened by Orakam Holding Limited, Tuskys main shareholder, aimed to streamline the ongoing corporate recapitalization and reorganization. Orakam holds 72.5% stake in the retailer that will be used to secure the debt.

However, the decision did not sit well with two minority shareholders with a cumulative stake of 27.5%. They decided to sell their stakes to the offshore fund or any other investor.

The supermarket chain has had a rough year as it struggles to remain operational despite iits internal wars and effects of the coronavirus pandemic as well.

Earlier this month, Tuskys received Ksh 500 million as part of the Ksh 2 billion credit line to cover working capital requirements including payment of outstanding staff salaries, pending bills, and rent arrears.

The retailer urgently needs the Ksh2 billion in the short to medium term to meet operating capital obligations. The shareholders pointed to the prospects of working with an equity investor in the future.