Shoprite ready to exit Nigeria – CEO
Shoprite Holdings Limited has announced that it is set to conclude plans on the final sale of its Nigerian outlets.
The 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 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.
The company added that the management expects the transaction to be approved by the end of the 2021 financial year, and that the 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 operating the outlets.
The Chief Executive Officer, Pieter Engelbrecht explained: “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.
The company had in August last year in its half year 2020 financial report announced that it would gradually end its operation in Nigeria.
The CEO attributed the sudden exit of the outlet from operations in Nigeria to unfavourable market conditions.
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