BEVERLY HILLS, April 07, (THEWILL) – South African company, Shoprite Holdings Limited, has disclosed that the sale of its Nigerian outlets was being concluded.
The company explained that it would shut down operations in the country by disposing of 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, Shoprite stated that the company was awaiting approval from the Federal Competition and Consumer Protection Commission after lodging the transaction with the agency.
According to the company, the management expected the transaction to be approved by the end of the 2021 financial year.
It 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.
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 company had in August last year in its half year 2020 financial report announced that it would gradually end its operation in Nigeria.
It said the board decided to formally exit its operations in Nigeria over unfavourable market conditions.