Local supermarket Naivas sells a whopping 30% per cent stake to a French private equity fund called Amethis Finance. It is rumoured this is a deal estimated to be worth billions of shilling.
In 2017, Amethis Finance pumped in about Sh36 billion in well over 11 African countries including Kenya. In this buyout, it is not clear how much the investors have bought out in Naivas Limited but going by historical data shows that the fund typically invests between Sh1.1 billion and Sh4.4 billion (Euro 10 million to 40 million) or more in target firms. With this kind of money without a doubt, this type of financial boost into Naivas will additionally enhance the Naivas financial muscle necessary in accelerating the supermarket’s expansion plans in major towns across the country.
Amethis international expertise and experience has the potential to boost Naivas supermarket’s performance in an industry that has recently seen the entry of global brands like the Carrefour, South Africa’s Game and Shoprite supermarkets, which are all backed financially by their parent firms. The deal also comes months after Quickmart and Tumaini merged following their acquisition by Sokoni Retail Kenya, a special purpose vehicle controlled by private equity firm Adenia Partners.