Tuskys Director Yusuf Mugweru has opposed a proposed merger with struggling retail giant Nakumatt Supermarket.
Mugweru, who owns a 17.5 percent stake in Tuskys, claimed that his siblings sidelined him in ongoing negotiations with Nakumatt.
The Tuskys Director further stated that he was yet to receive any information on the proposed deal.
"No information in this regard has been availed to our client as a shareholder, or through Yusuf Mugweru its director on the board of Tusker Mattresses Limited and Orakam Limited and Orakam Holdings Limited,” Mugweru stated through his Lawyer Philip Murgor.
“Needless to state that a transaction in the nature of a merger with another company cannot be contemplated or consummated, without the express and written approval of all shareholders. Our client has not consented or approved such a transaction,” he added.
Mr Mugweru is the fourth born of seven siblings who own Tuskys. He owns his Tuskys shares through a fully-owned company, Mugweru Investments Limited.
Other Tuskys shareholders include John Kago who owns 10 percent stake through Green Pharm Investments, Stephen Mukuha who owns 17.5 percent stake through Mitiki Investments, Sammy Gatei who owns17.5 percent stake through Future Group Ventures Investments Limited, George Gachwe who owns 17.5 percent stake through Aliann Investments Limited, Mary Njeri who owns 10 percent stake through Kendan Investments Limited and Mary Njoki who owns 10 percent stake through Njowawa Investments Limited.
Last week, Tuskys and Nakumatt confirmed talks on a proposed merger were ongoing but a formal agreement was yet to be reached.
They noted that representatives from Tuskys and Nakumatt as well as their advisors were in the process of holding discussions to explore potential business integration between the two family-owned retailers.
Sources close to the deal stated that the merger would see Nakumatt access stock from suppliers using Tuskys supermarkets' goodwill and value chain.
They further disclosed that the two will be maintained as separate entities, but Tuskys will take over the management of Nakumatt.
