(Ecofin Agency) - Kenyan Uchumi said it will issue a billion additional shares to attract an investment of 5 billion shillings. The transaction which could grant a majority of capital to a sole investor aims to reverse a trend causing the firm to lose shares as a result of the various mistakes made by former management.

If successful, the issuance would allow the supermarkets chain to have a financing which is 54% above its stock capital of 3.2 billion shillings. The transaction which is to be green-lit by the group’s assembly to be held next January 20 will dilute 900 million of the currently available market shares.

The Uchumi share hiked 5.3% on the Nairobi Stock Exchange compared to the day before, and closed at 8.9 shillings. This share’s value, during the year fell 10%.

Aaron Akinocho