03 Sep 2007


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Bibby Line takes 51% stake in Costcutter


Costcutter

Costcutter Supermarkets Group said today that Bibby Line Group has acquired a 51% share holding in the company, which includes the previous shareholding held by Kaupthing.

The existing management team and shareholders of Colin Graves, executive chairman; Nick Ivel, managing director; David Thompson - sales and development director; and Angela Barber, trading and marketing director will continue to operate the business.

They will be joined on the Board by three non-executives from Bibby Group.

This investment in Costcutter represents a strengthening of the contract with Nisa Today’s Ltd, from all shareholders.

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Paul Delves	04 Sep 2007 13:42:11
Costcutter sale to Bibby -- Sounds like good news for NISA - Bibby has strong links with Nisa I can't personally see any downsides Nisa members should be relieved that CC wasn't sold elsewhere

Mark Proudfoot	10 Sep 2007 11:43:11
Paul, We often do not have the same point of View, but on this occasion we seem to be in agreement. This new arrangement is far more sensible than that being proposed last year. Nisa members do not have the threat of a over leveraged merger headed up by an aggressive investment bank, which was always a dangerous situation. At least here we seem to have a neutral if not friendly investor in CC. There is however one obvious downside, that being Bibby now has an interest in two contracts between itself & Nisa-today's ( CC Supply Contract & Bibby Distribution Contract ), which brings to the foreground that these relationships have inherent conflicts of interest. How can CC continue to hold a seat on the Nisa Board and not be "Super Conflicted" as Bibby are now CC's paymasters effectively Bibby now hold a place on the Nisa Board. I and many other Nisa shareholders welcomed Nisa's move to "Open and Transparent Governance" which is a major achievement and benefit for the group's future. The highest governance is exactly what is immediately needed here to protect the interests of Nisa Shareholders and also when Nisa's distribution contract is back up for negotiation. The Nisa Board now has an opportunity to demonstrate that they have the insight-will-desire and propriety to deal with these challenges before them to create and nurture trading benefits for members using central distribution.