Sainsbury’s takeover target back in the black

NISA is back in the black as it gears up for a £130m takeover deal with Sainsbury’s.

The convenience store collective, which has 1,400 members and runs 3,000 stores across the country, posted profits of £2.8m in the year to April 2 – a turnaround from a loss of £5.4m the year before.

Sales, however, slipped 2.6pc to £1.3bn, due to the collapse of the My Local convenience store chain which it supplied.

Nick Read, chief executive, said the firm was ‘well placed’ to continue its three- year growth strategy and create a sustainable business model.

His comments came as the retailer confirmed it is in exclusive talks with a party over a potential takeover. It is understood Sainsbury’s has tabled a £130m bid for the firm in order to challenge Tesco’s £3.7bn merger with wholesaler Booker.

A Nisa spokesman said: ‘Following a number of enquiries from interested parties, the Nisa board has been running a process, with the help of professional advisors, to weigh up the merits of any possible offer.

‘The board has determined that one such proposal is of sufficient merit to grant the party involved a period of exclusivity in order to carry out due diligence. Should that party wish to make a formal offer for the company, the board will at that stage determine whether it is appropriate for this offer to be put to members.’

The spokesman said: ‘It will then be for the members to determine whether or not they wish to accept the offer.’