The Peter Mukuha family is set to earn Sh. 5.8 billion from the sale of an extra 11 per cent stake in Naivas Supermarket.
The sale will now see foreign investors gain a controlling stake in Kenya’s biggest retail chain. At the same time, the deal will mean that three of Kenya’s most prominent retail supermarkets will now be foreign owned.
This sale has been revealed by Mauritian conglomerate IBL Group. The IBL Group is part of a consortium that bought a combined 40 per cent stake in Naivas last year for $151.97 million (Sh. 21.4 billion).
“The company will subscribe to additional shares in Mambo Retail Ltd,” IBL Group said in a disclosure to its investors.
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Mambo Retail Ltd is the investment vehicle that IBL Group, French fund Proparco and German fund DEG used to invest in Naivas.
The trio currently holds a 40 per cent stake in Naivas International, which in turn fully owns the operating subsidiary Naivas Limited.
“The proceeds of the subscription of shares will be utilised by Mambo Retail Ltd to acquire an additional 11 per cent in Naivas International (which is) the leading retail chain in Kenya which will result in Mambo Retail Ltd holding 51 per cent of the shares in Naivas International Ltd.”
The Mukuha family in August last year pocketed $32.29 million (Sh. 4.4 billion) from the sale of an 8.5 per cent stake to the IBL consortium in a transaction that valued the retailer at Sh. 45.6 billion.
Mukuha family joined the International Finance Corporation (IFC), German fund DEG and private equity firms Amethis and MCB Equity Fund to sell a combined 40 per cent stake in the country’s biggest supermarket for a record-setting $151.97 million (Sh. 20.9 billion).
Naivas Supermarket made a profit of Sh. 2.1 billion in the nine month period ended March 31.
“Naivas, the leading supermarket chain in Kenya that the Group invested in during the first quarter, generated higher profits compared to last year,” IBL said in a statement. “The share of profits for Naivas, as an associate, is being reported for the first time this year and represents Mauritanian Rupees 184m (Sh. 553.4 million).”
