Kenya's Uchumi extends debenture to end-November

NAIROBI, Nov 13 (Reuters) - Kenyan retailer Uchumi Supermarkets said it had extended the closing date of its 10 percent convertible shareholders' debenture to the end of the month at the request of major shareholders. The supermarket is seeking to relist on the Nairobi Stock Exchange following its suspension in 2006 due to insolvency, after which the government came to its rescue with a 675 million shilling ($9 million) loan due to be repaid this month. "A number of shareholders have requested the specialised receiver and manager to extend the closing date for the above shareholders' ... debenture," Uchumi said on Friday. "The closing date has been extended to November 30 ... to enable more shareholders to participate." The supermarket is raising funds to repay 125 million shillings it owes to shareholders and raise long-term debt of 1.2 billion shillings. Jonathan Ciano, Uchumi's chief executive, told Reuters Uchumi had opted to give additional shareholding to private investors, despite the government wishing to take up some. "The government had even come to ask us 'can we convert ours?' I told them 'no'. We first want to go to the shareholders," Ciano said by telephone, adding that he expected Uchumi to be technically out of insolvency by December. The firm posted a 20.3 percent rise in operating profit in the year to June and a 60.2 percent jump in pretax profit to 167 million shillings. (Reporting by George Obulutsa; Editing by David Cowell) ($1=74.70 Kenyan Shilling) (For more Reuters Africa coverage and to have your say on the top issues, visit: http://af.reuters.com/) Keywords: UCHUMI/ (Email: [e-mail] [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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