The three parties are acquiring stakes owned by a cluster of investors that include World Banks International Finance Corporation (IFC), Amethis, MCB Equity Fund and German Sovereign Wealth Fund DEG which acquired shares in the retailer for sh6 billion in April 2020. DEG is also withdrawing its initial investment in Naivas and re-entering the retailer’s shareholder list as part of the new consortium. A statement shared by the French Fund indicated that its capital contribution will be $31.5 million(sh3.7 billion). The statement further said, “Proparco is pleased to announce its partnership with IBL Group, the largest conglomerate of Mauritius [and] DEG to jointly acquire a 40 per cent interest in Naivas International, which owns 100 per cent of the shares of Naivas Limited,” The retailer had earlier announced that the partners were taking a minority interest in the company without disclosing the details of the proposed transaction. By Co-investing in Naivas alongside the IBL group, the fund would accompany a longstanding business partner in its regional expansion, part of its “Beyond Borders strategy” where IBL has earmarked the retail sector as one of the investment avenues for its EastAfrican Expansion. The partners are also yet to confirm how they will divide the shares of the joint acquisition.
