Retailer Nakumatt Seeks Foreign Investment For $14m East Africa Expansion
Ventures-Africa.com - Jul 30th, 08:51
VENTURES AFRICA – Nakumatt Holdings Ltd, a Kenyan supermarket chain, has began talks to sell almost a quarter of its shares to foreign investors to aide its expansion plans across East Africa.
The retail chain indicated last April that it would commence talks in June over plans to bring on board foreign investors, after buyout talks with a consortium led by London-based private equity firm, Satya Capital, collapsed.
The regional director for strategy and operations, Thiagararajan Ramamurthy, has now confirmed the discussions, explaining that the chain will seek to partner willing investors to raise cash for its expansion projects.
“There are quite a few global players very keen to partner with us and we are still at initial stages of discussions,” Mr Ramamurthy told the Business Daily on Wednesday.
The proceeds are expected to fund its Sh1.2 billion ($14 million) East African expansion drive, which will see the chain open 8 new outlets between October and February in Djibouti, South Sudan and Burundi, as it eyes a 15.3 percent growth in revenue.
According to Business Daily, the holding company would rather attract equity investment than seek to pursue costly bank loans, and does not intend to list on the Nairobi Stock Exchange (NSE) in the short term.
Analysts, led by Citigroup, have pinpointed East Africa as the leading destination for global retailers, in terms of growth frontiers, and investors interested in financing retail business ideas.
The retail giant, which was ranked 3rd in the 2012 top 100 supermarket chains by Top100Arena, has 37 stores across Kenya, Uganda, Rwanda and Tanzania, with a staff base of over 4,000 people.© 2013 Ventures Africa. All Rights Reserved
M&S steps up convenience store roll-out
24/10/2013 - 12:08
London - Britain's Marks & Spencer will step-up expansion of its Simply Food store network as it looks to benefit from growing consumer demand for smaller, convenience outlets, it said on Tuesday.
Customers reward a better, stronger and clearer Pick n Pay
23/10/2013 - 10:54
In an extremely competitive market, customers have responded positively to decisive action by Pick n Pay to improve the shopping trip. In the first six months to 01 September 2013, the company delivered an improved financial performance over the previous period, growing Group till sales (owned and franchise stores) by 8.1%.
Nakumatt eyeing East Africa's hospitality sector
18/10/2013 - 08:47
Nakumatt is targeting new sales within the hospitality industry by offering select label products like furnishings, decorative accessories, bath towels, bed and table linen. according to the supermarket chain's business development manager Neel Shah.
Bacardi opens first African office in Kenya
10/10/2013 - 12:32
The World’s largest privately held spirits company, Bacardi Limited is set to open its first African sales outlet in Nairobi, Kenya on Tuesday following the growing demand for luxurious goods such as alcoholic beverages by consumers.
Retailers line up for position at Heidelberg Mall, Gauteng
08/10/2013 - 08:02
Heidelberg Mall, set to open in October 2014, is already attracting a powerhouse of leading retailers a full year before it opens, including some of South Africa’s most popular national stores.