Nisa members have another chance this week to give feedback on the Co-op Group’s proposed takeover offer at the second round of regional roadshows held by Nisa and Co-op management.
The meetings will take place on 31 October (Edinburgh), 1 November (Leeds and Birmingham), 6 November (Belfast), and 7 November (Bristol and London).
Some members have raised concerns over the proposed financial offer to shareholders, particularly regarding deferred payments over three years and the terms of additional rebate payments.
Bedfordshire-based retailer Kishor Patel said: “The deal has a good chance of being voted through only if the deal makers go back to the drawing board and polish the deal with improvement in the price, and two-year payment terms with flexibility in the turnover.”
He suggested three payments: the first on completion, the second after 12 months, and the third after 24 months.
Rav Garcha, who owns five Nisa stores in the West Midlands, said: “At the presentation they said the 1% rebate would only apply to sales up to June this year, which seems unfair if you double your volume over the next couple of years. It’s ambiguous though because in the literature it says up to 2020.
“Either way it’s not enough to invest in our stores, which we need to do to gear up to a new supply chain delivered in a different way, and £20,000 isn’t enough to start with.”
David Nice, who owns two stores in Essex, said he would rather the deferred share payments were over two years rather than three, but he was positive about the increased buying power the offer would bring.
Paul Cheema, co-owner of two Nisa Malcolm’s stores in Coventry, said: “You have to look forward and ask what is the future of convenience retailing and what can consolidation bring for us.”
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