A consortium comprising World Bank’s International Finance Corporation (IFC) and French private fund Amethis have sold an estimated 30 per cent stake in Naivas Supermarket.
The stake was sold to a cluster of investors led by Mauritian conglomerate IBL Group.
The investors are selling their shares for a substantially larger sum, with IBL saying this is the highest-value transaction it has ever undertaken.
“The investment in Naivas International is the biggest investment in IBL’s history,” the multinational said in a statement.
This underlines the worth of Naivas, which remains a star attraction to private equity funds in Kenya’s retail sector where the collapse of one of the major players in recent years has left a gap.
The value of the transaction was not disclosed however IFC and its partners MCB Equity Fund, Amethis, and German sovereign wealth fund DEG had paid Sh6 billion to acquire the minority stake in April 2020
The exit by the IFC consortium represents an unusually short investment period for institutional investors that typically hold companies for seven years or more.
IBL says the proposed transaction will give it a platform for further investments in East Africa, noting that Naivas has scaled up its operations substantially to entrench its position as the biggest supermarket operator in the country.
“This family business created in 1990 is an example of a success story that has continued to grow despite the pandemic thanks to its strong business model. With 84 outlets in 20 cities and towns across Kenya, it has put modern grocery retail within everyone’s reach. Naivas also contributes to the Kenyan economy by employing over 8,000 people.” Arnaud Lagesse, IBL’s chief executive, as quoted by Business Daily.
Naivas has grown to become one of Kenya’s largest companies by sales and employment.
Read also; Naivas & IFC Partner to Improve Food Safety Standards in its 71 Stores.
