Nisa shareholders back Co-op takeover

The shareholders of Nisa, the convenience retail specialist, have approved the £137m takeover by the Manchester-based Co-operative Group.

At a meeting in Leeds yesterday (Monday, November 13), members voted 75.79% in favour and 24.21% against Co-op’s offer.

The offer requires clearance from the Competition and Markets Authority, which is expected around the end of March next year.

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 unrecognizable 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 said:“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.”

Nisa shareholders will receive an equal initial payment, a deferred share payment payable over three years, as well as additional rebates payable over four years.

Along with taking on the existing Nisa debt of £105m, the combination is expected to bring “significant immediate and long-term benefits” for Nisa members, the chain said.

Last month, Nisa reported a positive H1 trading for the 26 weeks to 1 October 2017, with total sales up 12.4% to £728m on the comparable period.

In June, the business also announced that it had completed the £120m refinancing of its debt facilities, providing longer term, cheaper, and more flexible capital for Nisa to further invest in growth over the next three to five years.