Kenyan supermarket chain, Nakumatt said it plans to list on the Nairobi Securities Exchange (NSE) and other stock markets in the region within the next three years, opening up opportunity for investors to own part of the retailer’s business which span across four East African countries.
A planned 25 percent stake sale in the company was made public last year, with potential windfall expected to go into boosting its regional expansion plan. But talks with strategic investors were stalled following the Westgate Mall attack in 2013 that destroyed its most profitable outlet. The retail chain has now revealed it will sell the stake within the next year as expansion has been made a priority.[eap_ad_2]
Nakumatt’s MD Atul Shah however explained in a statement that the stake currently considered for sale now is an equity stake and not strategic investment. It will therefore “be significantly less than 25 percent,” he noted.
“We are also progressively putting in place the requisite structures and systems to facilitate the cross-listing of Nakumatt at the regional bourses in the next 3-4 years,” Shah added
According to him, the listing by introduction will be done at the Nairobi Securities Exchange (NSE), the Uganda Securities Exchange (USE), Dar es Salaam Stock Exchange (DSE) and the Rwanda Stock Exchange (RSE).
Nakumatt Arusha, formerly operated by South African Retailer – Shoprite – will officially open on Saturday, making it the retailer’s 50th branch, an achievement that comes months ahead of its February 2015 target of opening a 50th store under its Nakumatt 2.0 Corporate Development Strategy.
“This weekend, we shall be opening our 50th branch in Tanzania which will also symbolically confirm our commitment to expand our services beyond East Africa in the next five years,” Shah affirmed.
Nakumatt currently enjoys more than $650 million turnover for its regional operations, raising Shah’s hopes for the future, with its expansion plans now trained on such markets as, South Sudan and Burundi among others. (VENTURES AFRICA)[eap_ad_3]