Just In: Shoprite Finalizes Sale Of Nigerian Subsidiaries

South African Company, Shoprite Holdings Limited, has revealed that the sale of its Nigerian outlets are being finalized.

The company stated that it would shut down operations in the country by disposing a 100 percent equity stake in its Nigerian retail outlets.

In its recent financial report for December 2020 operations, gotten from the company’s website on Tuesday, 6th April, Shoprite said that the company was waiting for 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 also said that the management was in the process of finalizing a franchise agreement for the Shoprite brand to stay put in Nigeria in addition to an administration and services agreement to provide support to the new shareholders while operating the outlets.

The Chief Executive Officer, Pieter Engelbrecht announced, “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 further stated.

The company had in August in its half year 2020 financial report, revealed that it would gradually conclude its operation in Nigeria.

It also said the board has agreed to formally exit its operations in Nigeria over unfavourable market conditions.