Directors of Orakam Holdings noted that Tuskys’ financial position is very weak and may not support the business for much long.

“Tuskys requires immediate capital injection amounting to Ksh 2 billion,” said the Directors.

Denies Sibling War

Meanwhile, the retailer has denied that one of its seven sibling shareholders has blocked the attempted sale of some of the company’s stake over lack of transparency in the management.

Tuskys board of directors stated that all seven siblings held a board meeting on July 19 at a Nairobi Hotel where the seven shareholders gave their approval for the progression of the ongoing strategic investor sourcing efforts.

“The shareholders provided their nod to the acquisition of a majority stake in Tuskys by any equity investor who will further provide strategic leadership for the long-term growth of the business and for the benefit of all stakeholders,” said the board of directors in a press statement.

The statement further says that the Tuskys board, with the help of transaction advisers, is currently evaluating the various offers with the aim of concluding the proposed offloading off stake within the shortest time frame possible.

The board also claimed that it had secured a suppliers’ commitment to avail supplies for sale pending the completion of the stake sale.

The company is planning on selling stake to raise funds needed to keep the business afloat.