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Shoprite concludes sale of Nigerian subsidiaries


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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