Naivas Limited is set to sell about 30 percent of its stake at billions of shillings to a French Private Equity Fund, Amethis Finance.
The deal between Naivas Limited and Amethis Finance is expected to boost Kenya’s investment profile and retail industry with talks regarding the transaction reportedly at advanced stages.
It remains unclear how much Amethis is set to spend into Naivas but previous data shows that the fund often invests in billions of shillings.
“Amethis Fund II follows the same investment strategy as Amethis Fund I by providing growth capital to African mid-cap champions, through investments with an average ticket size of EUR 10-40m, or more through co-investment,” said Amethis.
Amethis international expertise has the ability to boost Naivas supermarket’s performance in a huge way at a time when retailing industries are failing with examples of Nakumatt which recently shut its last outlet recently.
French investors seem to have noted a gap in the retail sector with examples of retailers such as Carrefour penetrating the Kenyan market which in a way has disadvantaged local investors and set the bar extremely high in matters service and stocking.
Game and Shoprite from South Africa have also managed to penetrate the Kenyan retailing sector with backing from their parent firms leaving one to wonder why it is so difficult for Kenyan retailers to bloom as well.
The transaction between Methis and Naivas Limited comes a few months after Quickmart and Tumaini merged following their acquisition by Sokoni Retail Kenya, a special purpose vehicle controlled by private equity firm Adenia Partners.
Ukwala, Nakumatt and Uchumi Supermarkets are some of the retailers that have buckled under pressure with Choppies reported being giving the last kicks of the dying horse, a show that the Retailing Industry in Kenya needs a review.