Shoprite Holdings Limited, has announced that the sale of its Nigerian outlets was being concluded. The South African Company said it would shut down operations in the country by disposing a 100 per cent equity stake in its Nigerian retail supermarkets.
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.
It said the board decided to formally exit its operations in Nigeria over unfavourable market conditions.