Breaking News: Nisa Today’s rejects second Bibby offer

NISA-TODAY’S, the UK’s largest buying group for independent retailers, has rejected a second takeover approach from North West shipping to financial services company Bibby Line Group.

The board of mutually-owned Nisa-Today’s, which is based in Scunthorpe, said it had unanimously rejected the £133m offer, despite being a “significant improvement” on Liverpool-based Bibby’s first approach, because it was not in the best interests of its members.

Nisa-Today’s, which is owned by nearly 1,000 shop owners and wholesalers, said the headline offer “substantially overstated” the real price for the company as “40% of that claimed value was from potential payments in the future that would be generated by members own trading”.

The group also claimed that a takeover would have demutualised the company and led to a “fundamental change of ownership and control”.

Bibby’s suggestion of minority member representation on the Nisa board in future was not, in the board’s opinion, sufficient to counter this,” Nisa-Today’s said in a statement.

The statement continued: “Feedback received from members since they were notified of the board’s decision to reject the first approach from Bibby Line Group Limited demonstrated that they are strongly in favour of retaining the mutual business model and unique culture focussing on member benefits.

“Nisa-Today’s mutual structure and low cost model already work well to keep delivered costs and prices low and provides significant member benefits.”

Nisa also said it believed the approach was a “significant undervaluation” of Nisa-Today’s, as the majority of any payment would be deferred and conditional on future performance.

“Bibby Line Group Limited has indicated that this was a final approach and the Board considers the matter is now closed. It continues to be very much business as usual for Nisa-Today’s,” the statement concluded.