The proposed GBP200m (US$368.86m) deal to merge the privately owned retailer Costcutter with cooperative buying group Nisa-Today’s has been revised, giving some ground to Nisa members who have been highly critical of the offer.
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Nisa-Today’s is a buying cooperative made up of 905 wholesalers and retailers who collectively own 5,000 shops. Its members are all shareholders. The merger, which advocates claim would give the group enough buying power to compete with the ‘big four’ supermarkets, would see the company demutualised.
The move has been highly criticised by a vocal segment of the member-shareholders, who say Nisa’s management has a vested financial interest in seeing the deal go through.
“There was a Holdings Board meeting yesterday (20 June) and it was agreed in principle that the stake in the new company that Nisa-Today’s shareholders would have would increase from 40% [originally proposed] to 51% – so essentially they would have a controlling interest,” Tom Williams, a Nisa-Today’s spokesperson, told just-food.
“Ultimately, the initial plans were very much that – initial. Discussions have been ongoing and the board feel that the revised proposals will be more favourably received by Nissa-Today’s members,” Williams continued.
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By GlobalDataThe document detailing the new proposals will be released to Nisa members in mid-July and a vote will be taken following a six-week consultation period, sometime in September.
