Quality Group Ltd of Tanzania has placed a bid for a majority stake in Nakumatt Tanzania, few weeks after the retail chain announced plans to sell 51% of its shares to raise more capital. This has set the stage for a major battle for the shares as Nakumatt has been seeking approval to offload the stake to Ascent Investment Ltd
Through a press statement published today in Jambo Leo, a Kiswali newspaper owned by Quality Group Ltd, the management expresses interest in snapping up the shares to strengthen its retail and distribution business. QGL, which buys businesses and turns them around, recently entered the retail market and expects to use Nakumatt Tanzania expand its market share and presence in Tanzania’s retail segment.
This new development will likely spark a bidding contest for the Nakumatt Tanzania. Given its deep pockets, QGL could easily out-price Ascent Investment. Nakumatt, the leading retailer in Kenya, entered Tanzania two years ago by acquiring Shoprite shops in Tanzania for Ksh76 billion. Nakumatt owns three retail outlets (one in Arusha and two in Dar es Salaam.
QGL is owned by Yusuf Manji, a Tanzania entrepreneur who owns substantial interest in some of the largest companies in the region and is believed to be worth hundreds of millions of Tanzanian shillings. He has invested in properties (both residential and commercial) and the auto industry. He is also the founder of Quality Group.
The group has over 50 wholly owned and associate companies, forming one of the Tanzania’s premier and diversified business empires, including, automotive, engineering products, international trade, logistic solutions and warehousing, real-estate development, food Processing and consulting among others.
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Quality Group management says the outlook for retail and distribution in Tanzania is strong and QGL would use its experience in distribution to strengthen Nakumatt’s business. QGL is also holding talks with French leading retailer Carrefour for a partnership in East African markets except Kenya where it already has an operation. Carrefour is the world’s second largest hypermarkets operator after Walmart.
QGL last year also expressed interest in buying Uchumi supermarket branches in Tanzania. “QGL expects quick conclusion of talks between Nakumatt and Carrefour, which will combine to make us the biggest retailer in East Africa,” said QGL in the statement.
THE PRESS STATEMENT
They dont have money to pay salaries of employees, but dreaming to buy retail chains like Nakumatt. Never trust toilet papers like Jambo Leo, which is not even in circulation. The company’s CEO who is currently absconding is just trying to boost the company’s brand image, but in reality, there is no money to buy even cigarette pack in Nakumatt.