Shoprite to sell Nigerian Business to Property Company, Persianas - Report
A Nigerian property company will be taking over Shoprite’s local business in Nigeria, Reuters reported on Wednesday, citing multiple sources.
Persianas is buying Shoprite’s Nigerian business after the South African retailer decided to retreat from other African markets.
Persianas Group Nigeria are the real estate investment partner of choice for commercial and residential real estate development and management in Nigeria.
Shoprite, with more than 2,300 stores across Africa, is awaiting regulatory approval on the sale of its Nigerian supermarket operation, though no further details about the deal have been disclosed.
The company in August 2020 announced that it will be exiting the Nigerian market after over 15 years.
Shoprite said that its business in Nigeria operated under Retail Supermarkets Nigeria Limited “may be classified as a discontinued operation.”
The company said it has been approached by potential investors willing to take over its Nigerian operations. It said it is considering an outright sale or parting with a majority stake in its Nigerian subsidiary.
“Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited,” Shoptite said.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time.”
Shoprite at the time denied it was exiting Nigeria, noting that no one “leaves over $30 billion investment and close shop”.
While the company is yet to give further details of its exit plans from the Nigerian market, the announcement has led to a series of heat between Shoprite and its employees.