World Bank arm (IFC) buys shares worth $1.5 million from Naivas

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The International Finance Corporation (IFC) which is an association of investors that includes the PE fund Amethis Finance is set to buy a stake worth sh 1.5 billion from Naivas.

IFC disclosed that it is seeking to make an equity investment in conjunction with Amethis by buying part of Naivas shares. The Mukuha family, who own the majority of Naivas shares, will continue to lead the company as the main shareholder.

The stake to be owned by the co-investors is not yet clear. However, the capital is set to expand the business, which has attracted high competition from other companies such as Majid Al Futtaim-backed Carrefour franchise. 

IFC is expected to strengthen the company’s governance structure, provide a food safety review program that is stricter than the local standards, and also assist in the improvement of the company’s social and environmental operations.

Naivas growth has projected months after the merge of Quickmart and Tumaini supermarket. The company has progressively expanded its local market in the last decade. It recently bought six stores worth sh 422 million from the collapsed Nakumatt.

A review of supermarkets/malls in the country has pointed out that money laundering, internal fraud, and mismanagement are the top problems affecting this type of business.

IFC is set to build on Naivas Corporate Governance Structure and align it to potential IPO at the Nairobi Securities Exchange.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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