A Tuskys Store. Photo by The Star.
The intended merger between two retail stores,Tuskys and Nakumatt may take longer after the Competition Authority of Kenya (CAK) said that Tuskys must resolve the wrangles of ownership among the shareholders before they can proceed.
According to The Business Daily, CAK send a letter to Tuskys shareholders notifying them of the reported wrangles within the management and they issued that are supposed to be sort by the courts.
"The objector (Yusuf Mugweru) brought to the attention of the authority pending law suits among the the acquirer concerning fraud which are yet to be determined by the courts," the letter reads in part as quoted by The Business Daily.
"Given the gravity of the allegations, we advise that it is prudent for Tuskys' shareholders to resolve their disputes to enable us to be properly seized of the proposed transactions."
In addition, the regulator said that it was their responsibility to ensure that everything runs out in according to the Law and they could not ignore such claims.
"The objector had raised issues relating to the ownership of the acquirer, its financial status and the overall viability of the intended transaction.; the issues the authority looks in to," the letter reads as quoted by the Business Daily.
Mr. Yusuf Mugweru had raised a complain that other Tuskys shareholders had locked him out of the decision to bail out the ailling Nakumatt, a decision that recquired unanimous decision of the shareholders.