Yusuf Mugweru, the fourth born of seven siblings who own Tuskys Supermarket, has rejected a proposal that would see the retailer merge with Nakumatt, an ailing retail conglomerate.
His decision could ultimately lead to the collapse of the deal, which was announced last week.
Mr Mugweru explained that he was not included in the on-going negotiations and so far has received no information regarding the proposed merger.
The Tuskys director, who owns 17.5 percent stake in the retail chain, said he only learnt of the deal via the media.
“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.”
“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,” Mr Mugweru said through his lawyers.
Tuskys and Nakumatt both confirmed last week that talks were ongoing regarding the merger. However, no agreement had been reached till date.