Shoprite Holdings Limited, has announced that it would shut down operations in Nigeria by disposing a 100 per cent equity stake in its Nigerian retail supermarkets.
Recall that the company had in August last year in its half year 2020 financial report announced that it would gradually end its operation in the country over unfavourable market conditions.
Shoprite in its December 2020 financial report posted on its website stated that the company was awaiting approval from the Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.
The statement revealed that Shoprite management expects the sale to be approved by the end of 2021.
The South African company stated further that the management was in the process of concluding a franchise agreement for the Shoprite brand to remain in Nigeria.
The agreement includes administration and services to provide support to the new shareholders with operating the outlets nationwide.
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.