Nisa members vote yes on Co-Op takeover
Wholesaler and convenience store group votes significantly in favour of £137.5m bid
Members of wholesaler and convenience retail specialist Nisa Retail have voted significantly in favour of the Co-op Group’s offer to buy 100 per cent of the business for up to £137.5m.
Yesterday, members voted 75.79 per cent in favour and 24.21 per cent against the Co-op’s offer, which still requires clearance from the CMA. Clearance is expected around the end of March next year.
Nisa Chairman Peter Hartley said: “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 unrecognizable from that which existed when Nisa was founded more than 40 years ago. Co-op will add buying power and product range to our offering, while respecting our culture of independence.”
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.
Jo Whitfield, CEO Co-op Food said: “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.”
Along with taking on the existing Nisa debt of £105m, the combination is expected to bring significant immediate and long-term benefits for Nisa members, including access to greater scale, the Co-op’s award-winning range and own label proposition. Members will still enjoy the independence to operate their stores as they wish, and will be able to remain part of a member-owned organisation within the growing UK convenience retail sector.