Naivas Supermarket has entrenched its position as the leading local retailer in Kenya. This follows the successful sale of a 30 per cent stake that has raked in Sh. 6 billion and taken the retailer’s value to SH. 20 billion.
The stake was sold to among others the World Bank’s International Finance Corporation. Others who took part in the deal include private equity firms Amethis and MCB Equity Fund and German sovereign wealth fund DEG.
“IFC said it invested $15 million (Sh. 1.6 billion) while DEG said it provided $10 million (Sh. 1 billion),” said the Business Daily in a report that appeared in the Monday edition of the Kenyan business newspaper. The report further made an interesting valuation comparison. “At Sh.20 billion, Naivas’ valuation beats the market value of all but one company listed on the Commercial and Services segment of the Nairobi Securities Exchange, including Uchumi Supermarkets (Sh. 128 million) and Scangroup (Sh. 4.8 billion),” it said.
The successful transaction by Naivas Supermarket comes in the wake of news that Tuskys Supermarket is on the verge of collapse. Tuskys, which is the second biggest retailer in Kenya is seeking a capital injection of up to Sh. 2 billion to fund its immediate survival. The retailer is however dogged by sibling fights that have kept prospective investors at bay.
Despite the acquisition of the stake by investors, Naivas Supermarket’s majority shareholder will still remain the Mukuha family.