Nisa backs £137.5m Co-op takeover

Shareholders in the Nisa convenience store group yesterday voted in favour of the Co-operative Group’s £137.5 million takeover offer.

Members voted 75.79% in favour and 24.21% against the Co-op’s offer, narrowly exceeding the 75% threshold to approve the deal.

The deal will also need to be cleared by the Competition and Markets Authority (CMA). Their decision is expected around the end of March.

Nisa chairman Peter Hartley said: “We are delighted that our members have chosen in such significant numbers to vote in favour of Co-op’s offer.

“We as a board are firm in our belief that a combination with the Co-op is in the best interests of Nisa’s members.

“The convenience store environment is changing rapidly and is unrecognisable from that which existed when Nisa was founded more than 40 years ago.

“Co-op will add buying power and product range to our offering, while respecting our culture of independence.”

Co-op said Nisa members will still enjoy the independence to operate their stores as they wish and will be able to remain part of a member-owned organisation within the growing UK convenience retail sector.

Co-op also takes on Nisa’s net debt of £105m.

Jo Whitfield, CEO of Co-op Food, said: “We are delighted that Nisa members have supported our offer and our ambition to create a stronger member-led presence within the UK convenience sector.

“Together Co-op and Nisa can go from strength to strength, serving customers up and down the country and creating real value for them in their communities.

“Our offer remains conditional on CMA approval and we remain in discussions with them.”

Nisa shareholders will receive an equal initial payment, a deferred share payment payable over three years, as well as additional rebates payable over four years.

Last month Nisa reported its sales were up 12.4% to £728m in the first half of the year.

Last month Nisa reported its sales had risen 12.4% to £728m.