South African Company, Shoprite Holdings Limited, has
announced that the sale of its Nigerian outlets are being concluded.
The company said it would shut down operations in the
country by disposing a 100 per cent equity stake in its Nigerian retail
supermarkets.
In its latest financial report for December 2020 operations
obtained from the company’s website on Tuesday, Shoprite stated that the
company was awaiting approval from the Nigerian Federal Competition and
Consumer Protection Commission after lodging the transaction with the
commission.
According to the company, the management expects the
transaction to be approved by the end of the 2021 financial year.
Shoprite added that the management was in the process of
concluding a franchise agreement for the Shoprite brand to remain in Nigeria as
well as an administration and services agreement to provide support to the new
shareholders with operating the outlets.
The Chief Executive Officer, Pieter Engelbrecht said, “We
are at the approval stage in terms of the sale of our Nigeria supermarket
operation. From here, our capital allocated to the region remains at a minimum
and we continue to manage costs as best as we can.”
“Statement of comprehensive income reflects profit from
discontinued operations separately; assets and liabilities relating to the
Nigeria operations disclosed as held for sale,” the report stated.
The company had in August in its half year 2020 financial
report, announced that it would gradually end its operation in Nigeria.
It said the board decided to formally exit its operations in
Nigeria over unfavourable market conditions.
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