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Nakumatt: Another ailing Kenyan company
Rank: Elder Joined: 12/4/2009 Posts: 10,667 Location: NAIROBI
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Tuskys grew through assistance and guidance from Nakumatt. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Rank: Elder Joined: 6/23/2009 Posts: 13,488 Location: nairobi
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Ericsson wrote:obiero wrote:Juojo wrote:Walked into Nakumatt Mega and could literally smell the stench of death.The shelves were empty. The look on the faces of the few employees hanging around discussing in small groups was heartbreaking
I visited it too, just yesterday and it was a shell.. Luckily, Tuskys have today put forward a request for takeover.. Hope that the same is accepted Obiero link The exchange bar always one step ahead https://www.standardmedi...-merger-deal-with-tuskys
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/4/2009 Posts: 10,667 Location: NAIROBI
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The merger if it works out will put a permanent nail on the coffin for Uchumi Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 7/7/2009 Posts: 41
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KulaRaha wrote:TBH, this all sounds like another Nakumatt con job.... True. It's good for management since I don't think Tuskys will comb the books to see the manure they have been upto, which a foreign strategic investor would have done. This is just a postponed collapse Happiness is not the absence of problems, It's the ability to deal with them
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Rank: Elder Joined: 12/4/2009 Posts: 10,667 Location: NAIROBI
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What is the share of shareholding of the merged entity Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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"...temporary...stock taking.." Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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So, what's in it for Tuskys in this deal? Business opportunities are like buses,there's always another one coming
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Rank: Member Joined: 1/22/2015 Posts: 682
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This for me wins the 'Worst Deal of the Year' award. The pertinent issue with Nakumatt is the 30b debt. Nobody has the money to pay it off and still make financial sense of the company afterwards, and suppliers will not supply until the debts are paid. For Tuskys to embroil themselves in this miasma of failure is such a bad sign to the soberness of their management. Anyway, Nakumatt is still going down, they are just postponing the funeral. I'd rather they die quickly so that someone competent takes their spot and I go back to normal shopping.
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Rank: Elder Joined: 6/23/2009 Posts: 13,488 Location: nairobi
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KulaRaha wrote:So, what's in it for Tuskys in this deal? Tuskys will be selling its stock via Nakumatt outlets.. This is brilliant from Tuskys.. If it stinks they bail. The debt owed by Nakumatt remains on the applicant
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 1/22/2015 Posts: 682
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Rank: Elder Joined: 12/4/2009 Posts: 10,667 Location: NAIROBI
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obiero wrote:KulaRaha wrote:So, what's in it for Tuskys in this deal? Tuskys will be selling its stock via Nakumatt outlets.. This is brilliant from Tuskys.. If it stinks they bail. The debt owed by Nakumatt remains on the applicant The merged entity of Nakumatt and Tuskys has 6 years to clear the debt owed to financiers and suppliers. That is why Nakumatt has pledged its shares to the financiers. Cost cutting and shutting of some branches will happen big time. Some overlapping roles have to be abolished Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 1/22/2015 Posts: 682
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Ericsson wrote:obiero wrote:KulaRaha wrote:So, what's in it for Tuskys in this deal? Tuskys will be selling its stock via Nakumatt outlets.. This is brilliant from Tuskys.. If it stinks they bail. The debt owed by Nakumatt remains on the applicant The merged entity of Nakumatt and Tuskys has 6 years to clear the debt owed to financiers and suppliers. That is why Nakumatt has pledged its shares to the financiers. Cost cutting and shutting of some branches will happen big time. Some overlapping roles have to be abolished Nakumatt makes around 300m in a year. Clearing that 30b debt will take 100 years. Even if this move were to double or triple the profit, we're still talking 50 or 33 years to clear the debt. And let's be clear, that debt is here to stay. No shutting of branches or streamlining will take it away. It simply must be paid off with cold hard cash. This whole rushed announcement sounds to me like the noise Nakumatt were making earlier in the year about a secret investor that will take over. Desperate kicks of a dying horse. There is no gazette notice and thus I don't believe Tuskys will go through with it. No sane businessman can buy into this rotten carcass. This supermarket should just be left to die ASAP and another take it's place so that we can resume normal shopping and get on with our lives. Don't feel sorry for the owners, they have definitely made a lot of money over the years despite this unfortunate end, waende ushago sasa kupumzika. Nakumatt staff can also be absorbed en masse by whichever supermarket comes up. That is the only solution. Anything else is just postponing the burial and leaving us citizens with few shopping options!
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Rank: Member Joined: 2/8/2007 Posts: 808
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Mike Ock wrote:Ericsson wrote:obiero wrote:KulaRaha wrote:So, what's in it for Tuskys in this deal? Tuskys will be selling its stock via Nakumatt outlets.. This is brilliant from Tuskys.. If it stinks they bail. The debt owed by Nakumatt remains on the applicant The merged entity of Nakumatt and Tuskys has 6 years to clear the debt owed to financiers and suppliers. That is why Nakumatt has pledged its shares to the financiers. Cost cutting and shutting of some branches will happen big time. Some overlapping roles have to be abolished Nakumatt makes around 300m in a year. Clearing that 30b debt will take 100 years. Even if this move were to double or triple the profit, we're still talking 50 or 33 years to clear the debt. And let's be clear, that debt is here to stay. No shutting of branches or streamlining will take it away. It simply must be paid off with cold hard cash. This whole rushed announcement sounds to me like the noise Nakumatt were making earlier in the year about a secret investor that will take over. Desperate kicks of a dying horse. There is no gazette notice and thus I don't believe Tuskys will go through with it. No sane businessman can buy into this rotten carcass. This supermarket should just be left to die ASAP and another take it's place so that we can resume normal shopping and get on with our lives. Don't feel sorry for the owners, they have definitely made a lot of money over the years despite this unfortunate end, waende ushago sasa kupumzika. Nakumatt staff can also be absorbed en masse by whichever supermarket comes up. That is the only solution. Anything else is just postponing the burial and leaving us citizens with few shopping options! Very dim view of how the business world works and a simplistic perspective to go with. Nakumatt is one of the largest employers in Kenya. Shopping can be done where you wish. I applaud this deal because it is an example of the resilience Kenyans are all about and also for demonstrating brotherhood/ sisterhood.Nakumatt founder helped mr Kago found Tuskys. For those who have been to Haku's office in Msa road, the late Joram Kago's portrait hangs next to the late Shah's. That businesses build on brotherhood can salvage each other is a great story. Now could they salvage Uchumi? Who knows???
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Rank: Member Joined: 8/27/2015 Posts: 138 Location: Harare
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A case of the tail wagging the dog? Unless the loans saddling the balance sheet are hived off separately I doubt Tuskys can swallow Nakumatt in its current state. On the flip-side, Nakumatt has some of the best-positioned store leases so a big win for Tuskys if this is purely a 'franchise' agreement or they're assuming the leases without taking over Nakumatt's toxic balance sheet. Investment philosophy development in progress...
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Kausha wrote:Mike Ock wrote:Ericsson wrote:obiero wrote:KulaRaha wrote:So, what's in it for Tuskys in this deal? Tuskys will be selling its stock via Nakumatt outlets.. This is brilliant from Tuskys.. If it stinks they bail. The debt owed by Nakumatt remains on the applicant The merged entity of Nakumatt and Tuskys has 6 years to clear the debt owed to financiers and suppliers. That is why Nakumatt has pledged its shares to the financiers. Cost cutting and shutting of some branches will happen big time. Some overlapping roles have to be abolished Nakumatt makes around 300m in a year. Clearing that 30b debt will take 100 years. Even if this move were to double or triple the profit, we're still talking 50 or 33 years to clear the debt. And let's be clear, that debt is here to stay. No shutting of branches or streamlining will take it away. It simply must be paid off with cold hard cash. This whole rushed announcement sounds to me like the noise Nakumatt were making earlier in the year about a secret investor that will take over. Desperate kicks of a dying horse. There is no gazette notice and thus I don't believe Tuskys will go through with it. No sane businessman can buy into this rotten carcass. This supermarket should just be left to die ASAP and another take it's place so that we can resume normal shopping and get on with our lives. Don't feel sorry for the owners, they have definitely made a lot of money over the years despite this unfortunate end, waende ushago sasa kupumzika. Nakumatt staff can also be absorbed en masse by whichever supermarket comes up. That is the only solution. Anything else is just postponing the burial and leaving us citizens with few shopping options! Very dim view of how the business world works and a simplistic perspective to go with. Nakumatt is one of the largest employers in Kenya. Shopping can be done where you wish. I applaud this deal because it is an example of the resilience Kenyans are all about and also for demonstrating brotherhood/ sisterhood.Nakumatt founder helped mr Kago found Tuskys. For those who have been to Haku's office in Msa road, the late Joram Kago's portrait hangs next to the late Shah's. That businesses build on brotherhood can salvage each other is a great story. Now could they salvage Uchumi? Who knows???  Tuskys is a clear loser here...what a weak move... the Nakumatt honchos will throw a party tonight
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Who bought out Harun Mwau?
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Rank: Member Joined: 1/22/2015 Posts: 682
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Kausha wrote:Mike Ock wrote:Ericsson wrote:obiero wrote:KulaRaha wrote:So, what's in it for Tuskys in this deal? Tuskys will be selling its stock via Nakumatt outlets.. This is brilliant from Tuskys.. If it stinks they bail. The debt owed by Nakumatt remains on the applicant The merged entity of Nakumatt and Tuskys has 6 years to clear the debt owed to financiers and suppliers. That is why Nakumatt has pledged its shares to the financiers. Cost cutting and shutting of some branches will happen big time. Some overlapping roles have to be abolished Nakumatt makes around 300m in a year. Clearing that 30b debt will take 100 years. Even if this move were to double or triple the profit, we're still talking 50 or 33 years to clear the debt. And let's be clear, that debt is here to stay. No shutting of branches or streamlining will take it away. It simply must be paid off with cold hard cash. This whole rushed announcement sounds to me like the noise Nakumatt were making earlier in the year about a secret investor that will take over. Desperate kicks of a dying horse. There is no gazette notice and thus I don't believe Tuskys will go through with it. No sane businessman can buy into this rotten carcass. This supermarket should just be left to die ASAP and another take it's place so that we can resume normal shopping and get on with our lives. Don't feel sorry for the owners, they have definitely made a lot of money over the years despite this unfortunate end, waende ushago sasa kupumzika. Nakumatt staff can also be absorbed en masse by whichever supermarket comes up. That is the only solution. Anything else is just postponing the burial and leaving us citizens with few shopping options! Very dim view of how the business world works and a simplistic perspective to go with. Nakumatt is one of the largest employers in Kenya. Shopping can be done where you wish. I applaud this deal because it is an example of the resilience Kenyans are all about and also for demonstrating brotherhood/ sisterhood.Nakumatt founder helped mr Kago found Tuskys. For those who have been to Haku's office in Msa road, the late Joram Kago's portrait hangs next to the late Shah's. That businesses build on brotherhood can salvage each other is a great story. Now could they salvage Uchumi? Who knows??? I'm a seasoned businessman and if there's one thing I've learnt over the years, it's that business boils down to very simple Standard 2 mathematics at the end of the day: money in vs money out. You can spin all the brotherhood/resilience stories you want, but when you do the simple mathematics for Nakumatt, it's absolutely hopeless. Anyway, why are you feeling sympathy for the owners? They've made billions over the years and will not be personally liable for any debts when the music stops. After Nakumatt is placed under receivership, the debt will now be the bank's problem, and Kenyan banks make astronomical profits so they can easily absorb the hit. When Nakumatt are gone, some other entrepreneurs will definitely scoop up the most lucrative locations and just poach the Nakumatt staff back. Sad as the situation is, the average lifespan for even the biggest, best run companies(S&P 500) is 20 years. This is just a natural death for Nakumatt. Let them die quickly and we shop normally again at the replacement.
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Rank: Veteran Joined: 5/5/2011 Posts: 1,059
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Guys this being Kenya what if there is a faceless cat hiding behind Tuskys to get to Nakumatt, someone with 30 Billion to launder and clean, Nakumatt if well managed can be a very good washing machine, if no branches are closed then this is a big probability, Naivas was eying some Nakumatt branches in Nairobi and Mombasa guess they got jumped. To Each His Own
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Rank: Member Joined: 1/22/2015 Posts: 682
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kayhara wrote:Guys this being Kenya what if there is a faceless cat hiding behind Tuskys to get to Nakumatt, someone with 30 Billion to launder and clean, Nakumatt if well managed can be a very good washing machine, if no branches are closed then this is a big probability, Naivas was eying some Nakumatt branches in Nairobi and Mombasa guess they got jumped. You can't launder money by paying debt, you'll be giving your hard stolen money to the bank . Zero hope here. If the Tuskys MD is a Wazuan, please just let Nakumatt go die and take up some of the locations they leave behind. We are tired of looking up and down for basic commodities like we've gone back to hunter-gatherer times.
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Nakumatt: Another ailing Kenyan company
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