Merger to delay Deacons’ listing at NSE
Posted Wednesday, August 8 2012 at 18:34
A proposed joint venture between clothing and household goods retailer Deacons with South Africa partner Woolworths will delay the planned listing at the Nairobi bourse.
In a notice published last week, Deacons said it was in the final stages of negotiating the joint venture.
The proposed listing at the Nairobi Securities Exchange, the firm’s directors said, would occur only after finalisation of negotiations.
“We are in discussion and, yes, it will delay the listing, as we have to be absolutely clear on all our supply relationships,” said the firm’s CEO, Mr Wahome Muchiri, in a communication to the Nation.
Deacons holds the local franchise for the South African Woolworth’s brand, along with a number of other international brands, including Mr Price, Truworths, Adidas and Identity.
Since 2010, Woolworths has been buying out its franchisers in South Africa, citing a need to streamline its business.
This had raised speculation that the firm might try to do the same with the Deacons business in Kenya.