This was approved during the Annual General Meeting (AGM) on Wednesday, where shareholders authorised the board to seek a strategic investor to inject up to Sh5 billion into the business through debt capital by issuing convertible debt instruments or equity capital by way of a private transfer of Uchumi shares to the investor or a combination of both.
Additionally, the shareholders mandated the board to do whatever necessary to successfully conclude civil and criminal cases pending in court in respect of the Kasarani property to pave way for its sale.
The retailer has been undergoing a restructuring which has seen it replace top management, close some outlets and re-negotiate contracts with suppliers.
The retail chain, which was once the largest in Kenya, has lost market share over the years as new entrants joined the market. The strategic investor is expected to support the retailer’s plans to recover its position in the market.
Meanwhile, the AGM confirmed the appointment of Samuel Kimani, Polycarp Igathe, Margaret Kositany, Catherine Ngahu and Louis Otieno as Directors.
Following its Q3 2014 Rights Issue which raised Sh895.8 million, Jamii Bora Bank became the largest shareholder at 15.7percent stake relegating the government which has 14.6percent stake, to second place.