South African Company, Shoprite Holdings Limited has revealed that it is ready to conclude the sale of its Nigerian outlets, and that is expected to be done by the end of the year.
Shoprite made this known in its latest financishopriteal report for December 2020 operations on its website.
According to the company, it will shut down operations in the country by disposing a 100 percent equity stake in its Nigerian retail supermarkets.
Shoprite said it was awaiting approval from the Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.
According to the company, the management expects the transaction to be approved by the end of the 2021 financial year.
It was also revealed that the management was in the process of concluding a franchise agreement for the 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,” Shoprite’s Chief Executive Officer, Pieter Engelbrecht said.
Peter said the capital allocated to the region remains at a minimum and the company will continue to manage costs as best as it can.
He added that, “Statement of comprehensive income reflects profit from discontinued operations separately; assets and liabilities relating to the Nigeria operations disclosed as held for sale.”