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Nisa members accept Co-Op offer

Shareholders in line for initial £20k payout as £143m deal approved with 75 per cent in favour

  

NISA’S members have voted significantly in favour of the Co-Op’s offer to buy all the shares in the member-owned wholesalers and convenience retailers for £143million.

The vote yesterday, Monday, November 13, came during a Court Meeting of the members held at Elland Road in Leeds, and saw 75.79 per cent in favour with Competition & Markets Authority clearance for the takeover expected around the end of March.
The Co-Op are to pay £137.5m for the business, plus up to £5.5m in associated deal costs, and take on Nisa’s existing £105m debt, shareholders will receive an initial equal payment – believed to be £20,000 – a deferred share payment payable over three years, as well as additional rebates payable over four years.
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 unrecognisable 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.”
Jo Whitfield, CEO Co-op Food, added:“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.”
In October 2017, Nisa reported a positive H1 trading for the 26 weeks to October 1, 2017, with total sales up 12.4 per cent to £728m on the comparable period. In June, the business also announced they had completed the £120m refinancing of their debt facilities, providing longer term, cheaper, and more flexible capital for Nisa to further invest in growth over the next three to five years.
Sainsbury’s had initially been the front runners to acquire Nisa following Tesco’s proposed £3.7billion deal to buy convenience retailers and grocery wholesalers Booker, but stepped back over fears of intervention by the CMA, however it was announced this morning, Tuesday, November 14, that the CMA have given conditional approval to the Tesco deal.



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