Shoprite To Finally Leave Nigeria, Fixes Date

Shoprite Holdings Limited, a South African group, has announced that it is on track to complete the sale of its Nigerian stores by the end of the year.

Shoprite announced this in its latest financial report for December 2020 operations on its website.

According to the group, it will cease operations in Nigeria by selling a
100 percent equity stake in its retail supermarkets in the region.

After
filing the transaction with the Federal Competition and Consumer
Protection Commission, Shoprite said it was waiting for approval.

The agreement is expected to be approved by the end of the fiscal year 2021, according to the company.

It was also announced that management was working on a franchise agreement for the company to stay in Nigeria, as well as an administration and services agreement to assist the new owners with running the outlets.

“We are at the approval stage in terms of the sale of our Nigeria supermarket operation,” Shoprite’s Chief Executive Officer, Pieter Engelbrecht said.

According to Peter, the company’s capital allocation to the area remains minimal, and the company will continue to control costs as best it can.

He added that,

“Statement of comprehensive income reflects profit from discontinued operations separately; assets and liabilities relating to the Nigeria operations disclosed as held for sale.”