KRU Risking To Lose 2bn?

Kenya Rugby Union (KRU) risks losing Sh2.127 billion in equity financing.

In a cautionary statement sent to 270 Degrees Sports Marketing & Consultancy Limited, the Agency appointed by Kenya Rugby Union to source for strategic equity investors, the lead arranger – Benchmark Solutions Limited, with the backing from a consortium of investors, has warned that KRU fundraising effort was being jeopardized by its appointed agent, whose representative has resorted to slanders and blackmails for personal and financial gains.

“As you are fully aware, this Sh. 2.127 billion investment is part of a $500M Master Investment intended by The Consortium of Policy Banks, Commercial Banks and Non-Bank Financial Institutions in The International Community under Investment Memorandum Number 037/EOI/BIL/05/2021 aimed for 19 Impactful Projects across several African Countries, in which the Kenya Rugby Union LLC is under consideration,” the statement reads in part.

“From the foregoing and based on your role in the transaction, you received private, confidential and classified financial & non-financial information pertaining The Consortium of Investors, and to our dismay, this information has since been illegally distributed amongst your rogue operatives in a manner that Contravenes Clause no. 9 in Contract Number 200122021/13. This is tantamount to a serious breach, needless to say, gravely jeopardizing and inhibiting the success of this transaction,” the statement continued.

Benchmark Solutions reiterated that the Consortium of Lenders have upheld its role and rights as the book runner and therefore has the right to terminate or re-allocate the said investment and further warned that it may be compelled to institute civil and criminal proceedings against the Agency and its operatives should it fail to heed to the notice.

KRU is seeking to raise money through issuance of new shares to investors. The money raised will be used to support the Safari Sevens, National 15s team test matches, National Sevens Circuit, Kenya Cup, Rugby Super Series, Barthes Cup and Merchandising. in addition to meeting the expenses of The National Teams, Kenya Shujaa, Kenya Simbas, Kenya Chipu and Kenya Lionesses.