A deal between retailer Naivas and a France-based private equity (PE) fund, Amethis Finance has been okayed by the Competitions Authority of Kenya (CAK).
While approving the deal that will see Naivas sell a 30 percent stake to Amethis, the competition watchdog ordered that the parties honour all contracts entered into by the retailer.
In a gazette notice, CAK said, “The Competition Authority has authorised the proposed transaction as set out herein on condition that the merged entity to honour all the current contracts with suppliers for the duration of those contracts.”
“The merged entity to ensure that prior to implementation of the proposed transaction, all the reconciled and agreed outstanding debts owed to its suppliers are paid to the extent permitted by the contracts entered into between the parties.”
On January 20, the family owned business confirmed the sale of a minority stake but declined to disclose the value of the deal.
Then, Naivas’ managing director David Kimani said they were looking forward to working with the PE fund’s investment vehicle as they seek to expand in an already competitive market.
“Amethis has a strong track record investing across Africa including Kenya, which will add value to our operations,” Mr Kimani said.
Amethis is said to inject between Sh1.1 billion and Sh4.4 billion in target firms.
So far, Naivas has 60 outlets across the country with the last store being opened in Nakuru.
The local retailer also acquired six stores formerly owned by Nakumatt. The deal cost a whopping Sh400 million.
“Naivas Ltd now occupies Nakuru, Lavington, and Prestige, purchasing the furniture, fixtures, and fittings and negotiated new terms with the landlords,” a notice to creditors read.