Dar firm bids for Nakumatt Tanzania

A Tanzanian firm has expressed interest to buy a majority stake in Nakumatt Tanzania after the Kenyan retailer put 51 per cent of its stake in the country for sale.PHOTO: COURTESY

A Tanzanian firm has expressed interest to buy a majority stake in Nakumatt Tanzania after the Kenyan retailer put 51 per cent of its stake in the country for sale.

Quality Group Limited (QGL), a conglomerate with interests in different industries, on Tuesday put a statement in a Tanzania daily newspaper, saying it had bid for the stake in the retail outlet.

Nakumatt Holdings confirmed the new development.

The statement in Swahili said the firm had expressed interest to buy a majority stake in Nakumatt Tanzania, with a view of growing its retail business.

“If the planned sale of the shares goes, it is expected to strengthen QGL, which has in the recent past ventured into retail business,” read in part the advertorial notice. It added that it is in talks with Carrefour, the French retailer, to operate on franchises across different East African markets, excluding Kenya.

Carrefour has two retail outlets in Kenya – at the Hub in Karen and the yet to be opened Two Rivers Mall. The firm says that after conclusion of the two deals – with Nakumatt and Carrefour – it will be operating the largest retail network in East African region.

At the moment, Nakumatt is the largest retail chain in the region with more than 60 outlets across different countries in East Africa.

In addition to the planned sale of Nakumatt Tanzania, the retailer in October said it is in discussions with foreign and domestic investors for the sale of a 25 per cent stake in parent company.