Nisa shareholders vote in favour of takeover by the Co-op

Shareholders in Nisa Retail have voted in favour of The Co-op Group’s offer to buy the chain for £137.5 million.

Members voted 75.79% in favour and 24.21% against the proposed deal. The offer requires clearance from the Competition and Markets Authority, which is expected around the end of March next year.
Nisa chairman Peter Hartley commented: “We are delighted that our members have chosen in such significant numbers to vote in favour of Co-op’s offer. We as a board are firm in our belief that a combination with the Co-op is in the best interests of Nisa’s members. The convenience store environment is changing rapidly, and is unrecognisable from that which existed when Nisa was founded more than 40 years ago. The Co-op will add buying power and product range to our offering, while respecting our culture of independence.”
Jo Whitfield, CEO of Co-op Food, added: “We are delighted that Nisa members have supported our offer and our ambition to create a stronger member-led presence within the UK convenience sector. Together Co-op and Nisa can go from strength to strength, serving customers up and down the country and creating real value for them in their communities. Our offer remains conditional on CMA approval and we remain in discussions with them.”
Nisa shareholders will receive an equal initial payment, a deferred share payment payable over three years, as well as additional rebates payable over four years.
Along with taking on the existing Nisa debt of £105 million, the combination is expected to bring immediate and long-term benefits for Nisa members including access to greater scale and the Co-op’s range and own-label proposition.
In October, Nisa reported total sales up 12.4% to £728 million for the 26 weeks to 1 October 2017 on the comparable period. In June, the business also announced that it had completed the £120m refinancing of its debt facilities, providing longer-term, cheaper, and more flexible capital for Nisa to further invest in growth over the next three to five years.

Tel: Nisa Retail (01724) 282028

Published Date: November 14, 2017
Category: Wholesale Industry News