Takeover: Nisa’s board has recommended members accept Co-op’s £143m bid. The board of convenience store operator Nisa has recommended that its members accept a £143million takeover bid from the Co-op.
The offer comes after the Co-op replaced Sainsbury’s as the front-runner in the process earlier this year and would see the group take on Nisa’s debts of £105million.
A combined entity would see the number of stores the Co-op supplies almost double to 7,000.
Nisa said the tie-up will give the group access to greater scale and Co-op ranges, with chairman Peter Hartley adding: ‘The board was unanimous in its decision to recommend the Co-op offer.
‘While the business has made significant strides in recent years, we firmly believe that the combination with the Co-op is in the best interests of our members.’
Nisa will be retained as a standalone business and brand, and the offer price includes £5.5million of deal costs that the Co-op will pay.
Under the deal terms, Nisa shareholders will receive an equal initial payment, a deferred share payment payable over three years and additional rebates payable over four years.
Nisa’s 1,190 shopkeeper members will vote on the deal in early November.