Tuskys Supermarkets is considering pulling out of its deal to invest in cash-strapped Nakumatt Holdings.
The retailer has written to the Competition Authority of Kenya expressing concern over some proposals by the appointed Nakumatt administrator.
“Our client has raised concerns regarding certain proposals by the Administrator of Nakumatt Holdings Limited on the restructuring of the company.
“As a result we are instructed to advise you that our client is re-considering its proposed investment in NHL [Nakumatt Holdings Limited] which was to be preceded by the Management Services and Loan Agreement now under consideration for exemption by the Authority”, reads the letter to CAK.
Tusky’s investment deal with Nakumatt involved provision of Sh650 million to support Nakumatt’s operations and another sum of between Sh1.5 billion and Sh3 billion for restocking branches.
Tuskys was charging a management fee of one per cent of sales, as part of the details of the agreement.