South African Company, Shoprite Holdings Limited, has said it has concluded the sale of its Nigerian outlets to new investors.
The company made this known in its latest financial report for December 2020 published on its website.
According to the company, it is disposing of a 100 per cent equity stake in its Nigerian retail supermarkets.
It noted that it is awaiting the approval of the Nigerian Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.
It said it expects the transaction to be approved by the end of the 2021 financial year.
Pieter Engelbrecht, Shoprite’s Chief Executive Officer, 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.”
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.
“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.
Shoprite had 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.
