South African Company, Shoprite Holdings Limited, has announced that sales of all the Nigerian outlets will be done and dusted by end of the year 2021.
The company is expected to dispose a % of its equity stake in its Nigerian retail supermarkets.
In its latest financial report for December 2020 operations obtained from the company’s website, Shoprite noted that the company was awaiting approval from the Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.
According to the company, management expects the transaction to be approved by the end of the 2021 financial year.
Management is 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.
“We are at the approval stage in terms of the sale of our Nigeria supermarket operation.
Pieter Engelbrecht, CEO, Shoprite,
“From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can.”
It is believed that the unfavorable conditions within the country may have motivated the exit moves.