French firm snaps 40pc of Naivas
Proparco, a French sovereign wealth fund, has revealed it acquired a Sh3.7 billion stake in local retail chain Naivas as part of a syndicate eyeing 40 per cent of Kenya’s fastest growing retailer.
Formerly a troubled family owned business, the retailer announced that a consortium that included Proparco, Mauritian conglomerate IBL Group and German sovereign wealth fund DEG were interested in the company without giving much details.
But now announcing the deal with IBL Group, Proparco which is a subsidiary of Agence Française de Développement (AFD) said it had decided to ‘jointly acquire a 40 per cent interest in Naivas International’, which owns 100 per cent of the shares of Naivas Limited.
IBL’s partners in the consortium are Proparco, a subsidiary of Agence Française de Développement (AFD) and DEG, a subsidiary of German KfW Group.
The move signifies the investors’ high appetite for Kenya’s retail sector, particularly Naivas which continues to outshine other retailers in the country.
It comes two years after the synbdicate consisting of IFC, Amethis, MCB Equity Fund, and German sovereign wealth fund DEG, bought the 30 per cent stake worth Sh6.0 billion in April 2020, with Naivas having been valued at Sh20 billion.
Investment firm Cytonn says from the 30 per cent sale transaction by IFC and Amethis, IBL Group which is the largest investment consortium in Mauritius, acquired the largest stake thus becoming its largest investment worldwide, and the first in East Africa
Naivas Managing Director David Kiman says the new partnership will drive the retailer to the next phase of growth. “We appreciate the immense knowledge and capacity in the retail industry that IBL brings to the table,” he said.
The acquisition marks IBL Group’s first investment as part of expansion in East Africa calling the move “symbolic”.
“This family business created in 1990 is an example of success story that has continued to grow despite the pandemic thanks to its strong business model. With 84 outlets in 20 cities and towns across Kenya,” said Arnaud Lagesse, IBL Group CEO.
