Sign in
Download Opera News App

Economy&Finance

 

Investing

 

Stock investment

Naivas Siblings in Court Battles Over Stake Sharing

After Mr. Peter Mukuha, the pioneer founder of the Naivas supermarket died in 2010, wrangles opened in board of the family owned business.

The supermarket floaded the shares for sale whereby South African retail giant Massmart was interested to invest, but massmart opted out from buying the majority stake from Naivas after the son of Mukuha, Mr Kagira moved to court.

And the sibling rivalry over the control of retail chain Naivas started after one of the sons of Mr. Mukuha the founding owner obtained a court order restricting his siblings from selling more stakes in the company.

Photo Courtesy

Mr. Kagira filed certificate of agency in the Court of Appeal to stop his his siblings from sellimg more shares. The allowed an application by Mr Newton Kagira Mukuha to stop his siblings from selling additional shares until his appeal is heard and determined.

“The status quo in so far as the shares in dispute are concerned be maintained pending hearing and determination of the said appeal,” Judges Hannah Okwengu, Asike Handa, and Daniel Musinga said.

Mr Kagira who is the eldest son of Mr. Peter Mukuha the founder of Naivas supermarket founder, who passed away in 2010 has areigned several allegations against his siblings, especially his brother David Kimani.

He claims that his brother David distributed family wealth leaving him out. He has accussed his brother of locking him out retail chain business management and even denying him his 20% share he contributed in 1990.

In his application submittedin court, Kagira argues that his siblings has locked him out of the family benefits after they allocated all shares to themselves and even went ahead to sell part of the business for Sh6 billion.

Like two years back the supermarket raised Sh6 billion after selling a minority stake of 30 percent to a consortium of investors among them the International Finance Corporation (IFC), the private lending arm of the World Bank. IFC, private equity firms Amethis and MCB Equity Fund, and German sovereign wealth fund DEG teamed up to acquire the minority stake.

However, in separate disclosures, IFC said it invested $15 million (Sh1.68 billion) while DEG said it provided $10 million (Sh1.1 billion). Amethis and MCB Equity Fund are yet to reveal the size of their participation in the deal.

From the records obtained from court files, Naivas Supermarket management stractures it is as follows where Mr. Kagira's name is missing. Directors are David Kimani 25 percent stake, the late Simon Gashwe who served as the company chairman 25 percent stake, Linet Wairimu 15 percent stake, Grace Wambui 15 percent stake, and their late father Peter Mukuha Kago ownes 20 percent of the shares.

But to Mr Kagira's arguement in court, is that the true ownership structure of Naivas Supermarket should read their father Peter Mukuha 30 percent shares stake, his sister Wambui 25 percent, Wairimu 15 percent, Kimani 10 percent, and him 20 percent shares stake.

Mr Kagira his claiming that Mr Kimani shared part of his father’s stake to family members without considering anything to him.

"That the applicant is praying that the honorable court be pleased to issue temporary order restraining the respondent and all directors of Naivas Limited from further sale of shares or interfering with money assets held by Naivas Limited pending the hearing and determination of Aappeal,’’ reads part of the application that he filed in court.

“That the applicant herein has been denied any company benefits from Naivas Limited for a period of more than 30 years despite having been a true contributor of 20 percent, the 3rd largest contributor of the seed capital,’’ further reads the application.

Mr Kagira further has challenged the ownership of his brother Kimani, whom he alleges had illegally allocated himself a 20 percent shareholding in the retailer.

Content created and supplied by: StdNewsKenya (via Opera News )

Court Daniel Musinga Naivas Newton Kagira Mukuha Peter Mukuha

COMMENTS

Load app to read more comments