Ailing Kenya-based Mumias Sugar Company has dismissed rumours claiming that it plans to divest some of the company’s assets in a bid to stay afloat.
The company’s chairman Kennedy Ngumbau clarified that some of the firm’s non-core assets including the golf course way, guest house, water bottling plant, sports ground, real estate and schools are set to be leased to boost the firm’s revenues, a report by Business Daily Africa confirmed.
He, however, dismissed reports suggesting that they intend to sell off these properties or wind down the company.
“We don’t have any intention to sell any asset of the company. It is not possible because Mumias is a company that is registered under the Capital Markets Authority and all assets are controlled by the lenders,” said Mr Ngumbau, accusing politicians of feeding the public with misleading information.
The chairman said the miller is planning to lease the assets through a competitive process. The report by Business Daily Africa further revealed that the firm’s latest financial results show that it was technically insolvent to the tune of Sh6 billion ($59 million).