Uchumi Rights Issue opens in November

Nairobi; Kenya: Uchumi Rights Issue enters the penultimate stage following approval by Capital Markets Authority.

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. The issue opens on November 10 and closes on November 28, 2014.

Uchumi's Chief Executive Officer Jonathan Ciano said expressed delight at the seal of approval by the market regulator and the Nairobi Securities Exchange (NSE).

"I would now call upon our shareholders to exercise their rights as we enter this new and exciting phase of our growth plans," he added.

.

Keep Reading business

•  NCPB sets in motion plans to compensate farmers for fake fertiliser
•  Governors reject revenue Bill, demand Sh439.5 billion allocation
•  Firm linked to fake fertiliser calls for arrest of Linturi, NCPB boss Premium
•  KPLC to pay Sh500 million for Nakumatt fire tragedy
•  Scented success: Passion for cologne birthed my venture Premium

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 ito competitively position our business and this requires substantial capital expenditure," Ciano said.