RM1bil talks over selling off Village Grocer owner

 

According to a Bloomberg report, the company that owns Village Grocer may be sold.

KUALA LUMPUR: Asian buyout firm Navis Capital Partners is exploring a sale of premium supermarket chains in Malaysia, which could be worth about RM1 billion, according to people with knowledge of the matter.

The firm is asking banks to submit proposals on the potential divestment of The Food Purveyor Sdn Bhd, the vehicle that owns the Village Grocer and Ben’s Independent Grocer supermarkets, said the people.

The Kuala Lumpur-based firm bought a majority stake in The Food Purveyor, then known as Village Grocer Holdings Sdn Bhd, in 2014, according to the retail company’s website.

Deliberations are ongoing and there is no certainty that Navis will proceed with a transaction, the people said, asking not to be named as the information is private. A representative for The Food Purveyor did not respond to requests for comment. Representatives for Navis did not respond to calls or emails.

Deal activity around supermarkets in Malaysia has picked up in the past year as the sector has been resilient throughout the Covid-19 pandemic. Should Navis decide to proceed with the sale, it would be joining the Teng family and the Asean Industrial Growth Fund who are working with an adviser to sell Jaya Grocer, the country’s biggest high-end supermarket chain, Bloomberg News reported in October.

Intermediate Capital Group plc bought TF Value Mart, a Malaysian operator of grocery retail stores in December, confirming an earlier Bloomberg News report.

The Food Purveyor operates three supermarket brands including Pasaraya OTK and manages 30 stores covering the Klang Valley and Johor Bahru in Peninsular Malaysia. - FMT