Shoprite Holdings Limited, has announced that the sale of its Nigerian outlets was being concluded as it plans to exit Nigeria this year.
The South African company noted that it would shut down operations in the country by disposing a 100 percent equity stake in its Nigerian retail supermarkets.
In its latest financial report for December 2020 operations obtained from the company’s website on Tuesday, Shoprite stated 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’s Chief Executive Officer, Pieter Engelbrecht, 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.
“We are at the approval stage in terms of the sale of our Nigeria supermarket operation,” Engelbrecht said.
“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.
The company had in August last year in its half year 2020 financial report announced that it would gradually end its operation in Nigeria over unfavorable market conditions.