Uchumi set to open new branch after rights issue

waltham · 2015-01-14T02:51:17+00:00

Mr Jonathan Ciano, the Uchumi Supermarkets chief executive officer Uchumi supermarkets is set to open a new outlet in Moshi, Tanzania, in its first major investment after conclusion of a Sh896 million rights issue last year. The new outlet will be located at the Kilimambogo Mall where Uchumi is the anchor tenant and has already secured 20,000 square feet space. "The official opening of the mall is taking place today (Wednesday) but due to logistics and preparations surrounding the opening ,we have decided to open the outlet next month," Jonathan Ciano, the Uchumi chief executive officer, said in a phone interview from Tanzania. Uchumi currently has five branches in Tanzania. It plans to raise these to seven by March this year, said Mr Ciano. Uchumi last November acquired Dar es Salaam-based Sifamart Supermarkets for an undisclosed amount. It is also said to be in talks with Sifamart Supermarket owners to acquire another store. "The decision to buy or not will be a combination of many factors. We always look at how convenient the place is to our shoppers and how effectively the acquisition boosts our business," said Mr Ciano when asked how far the retailer is in terms of the possible buyouts. He, however, did not give the timeline or the progress made so far. Uchumi hopes to finance its expansion through proceeds of the rights issue, which managed to raise Sh1.6 billion against an initial target of Sh896 million. Uchumi sold 99 million ordinary shares at a discounted price of Sh9 each. Part of the money will also be used to refurbish old Uchumi branches. SOURCE: BusinessDailyAfrica

Thread starter waltham
Start date Jan 14, 2015

waltham

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Uchumi set to open new branch after rights issue

waltham

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