Supermarket chain Naivas has acquired Nakumatt Holdings, East Africa’s once biggest supermarket chain, for KSh422 million.
Tyson Limited, the property valuer, carried out a market and forced sale valuation of the assets; furniture, fixtures, fittings, and equipment of the retailer’s branches – Nakumatt Mega, Prestige, Lavington, Kisumu, Embakasi and Nakuru.
“The total market value of all the assets in the remaining six branches were valued at KShs 110.5 Million. A forced sale value was determined at approximately 30% lower rate amounting to KShs 77.5 million,” reads part of the Administrator’s Statement of Proposal.
According to the statement, Tusky’s, Chandarana, Quickmart and Naivas expressed interest to acquire the assets.
“From the bids received, Naivas Ltd emerged the highest bidder at KShs 422,500,000.”
“Naivas paid for goodwill and also the location, which cannot be valued. Otherwise there is no value in the assets if we had stripped them off,” Peter Kahi, Nakumatt’s court-appointed administrator said.
“Naivas will re-use these assets which will be beneficial to its operations and contribute to their profitability. This will, in turn, prove to be beneficial to the economy.”
Proceeds from the sale of the assets to Naivas will be used to pay creditors. The creditors are owned Ksh 38 billion and the administrators will share about KSh422 million received from the sale of six Nakumatt branches to Naivas.