Sainsbury's favourite to acquire Nisa in £130m deal

Ikaba Koyi Sharecast | 19 Jun, 2017 14:02 | | |

Sainsburys store, retail, supermarkets, Sainsbury

Sainsbury's has emerged over the weekend as the favourite bidder for Nisa Retail and its 3,000 convenience stores in a deal said to be worth £130m.

Britain's second largest grocer was holding exclusive talks with Nisa after its proposal was selected over that of rivals, including the Co-Operative Group, The Sunday Times reported.

The bidding war between the retailers, who were seeking to get ahead of consolidation in the sector, was managed by investment bank Lazard.

It followed Tesco's proposed £3.7bn acquisition of Booker Group, the food distributor, among other recent moves in the sector.

Under the terms of the deal, Sainsbury's was thought to be offering £2,500 per share to each of Nisa's 1,400 shopkeeper members.

Each member was allowed to own up to 250 shares, in exchange getting access to Nisa's centralised buying power and brand.

In April, Nisa chief Nick Read warned of the threat posed by Tesco’s purchase of Booker as it would increase the latter’s buying power.

However, at least half of Nisa's members needed to approve the transaction and some had already opposed it, saying the board lacked permission to try and sell the company.

To take note of, the sale of Nisa to Sainsbury's would result in the former's demutualisation.

More news

22 Aug US close: Stocks rise amid tax reform optimism

US stocks ended in the black on Tuesday amid reports of progress on tax reform on Capitol Hill.

22 Aug Europe close: Stocks jump on positive news from the States

Stocks recouped their losses from the previous day on the back of positive newsflow around the White House's tax reform efforts, alongside a dip in the single currency's value as investors bide their time ahead of the start of the US central bank's annual Jackson Hole symposium on Thursday.

22 Aug London close: Stocks jump on US optimism, weaker pound

Shares finished the session higher, after a report stoked optimism that the White House might be making headway in its tax reform efforts and helped along by well-received results from the likes of Persimmon and BHP Billiton, although subprime lender Provident Financial nosedived after another profit warning.

21 Aug MBL Group rockets, says sales process under way

AIM-listed home entertainment, garden and leisure company MBL Group announced on Monday that although its garden and home division reported a 1,600% increase in operating profits, the group still posted a £158,000 after-tax loss.

22 Aug US open: Stocks snap higher on tax reform optimism

Wall Street was bouncing back in early trading, goaded by reports of progress on tax reform on Capitol Hill.

22 Aug Frontera Resources progressing with Block 12 in Georgia

Europe-focussed independent oil and Frontera Resources updated the market on its operations related to ongoing work at Block 12 in Georgia on Tuesday.

22 Aug Frutarom gobbles up Swiss flavour makers Mühlehof Gewürze

Frutarom Industries announced on Monday it had signed an agreement that would see them acquire 100% of Swiss company Mühlehof Gewürze.

22 Aug Atos finalises reseller agreement with Dell

Digital transformation specialists, Atos announced on Tuesday that it had taken steps to further strengthen its relationship with Dell EMC by way of a reseller agreement that would see Dell resell Atos's high-end 8 to 16 sockets x86 Bullion servers.

22 Aug Nostra Terra updates market on Pine Mills situation

Oil and gas exploration and production company Nostra Terra updated the market on its progress to secure the remaining 12.5% stake in the Pine Mills oil field through a non-appealable court judgement against Hammerhead Management Partners on Tuesday.

22 Aug Wednesday preview: WPP results under spotlight, while eurozone and US PMI eyed

Wednesday offers a slight lull in the week, but there is still a barrage of services and manufacturing purchasing managers' index surveys across Europe and from the US, plus results from WPP and Premier Oil.