Shoprite inches closer to exit operations in Nigeria, brand may remain

Shoprite Holdings Limited, Africa’s biggest supermarket retailer, is pushing ahead with its plan to exit Nigeria operations after over 20 years of doing business in the country.

The fast-moving consumer goods retailer confirmed in its financial statements that the terms of sale had been concluded for the disposal of a 100 percent equity stake in its Nigeria subsidiary, Retail Supermarkets Nigeria Ltd.

It said the transaction had been lodged with the Nigerian Federal Competition and Consumer Protection Commission for approval.

“Management expects the transaction to be approved by the end of the 2021 financial year,” the South African firm said. “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 with operating the outlets.”

Shoprite noted that its Board had in April 2020 approved the decision to dispose of a majority stake in its Nigeria subsidiary, Retail Supermarkets Nigeria Ltd.

The group said it had since signed an agreement for the sale of the entire shareholding in the subsidiary.

Shoprite, which opened its first store in Lagos in December 2005, has more than 20 stores across the country.

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