BEVERLY HILLS, June 03, (THEWILL) – Shoprite Holdings has sold its Nigerian business to local buyer, Ketron Investment, it said on Wednesday, nearly 16 years after the South African retailer opened its first outlet in the country.
Shoprite entered into a share purchase agreement with Ketron, a Nigerian company owned by a group of institutional investors led by property group Persianas, for the disposal of its entire interest in Retail Supermarkets Nigeria Limited, Shoprite and Ketron said in separate statements.
The price on the sale was not disclosed.
But Shoprite disclosed that 70 percent of the transaction proceeds had been received with the balance due in four equal instalments over 30 months.
The SA’s biggest grocer has been reviewing its long-term options across Africa to focus more on its home market and has already exited Kenya.
The terms of the transaction include a franchise agreement, which secures the Nigerian retailer’s right to continue to use the Shoprite brand throughout its Nigerian chain of several branches, Shoprite said.
It also includes an administration and services agreement which provides the business with administration and technical support from the Shoprite Group for an initial period of five years.
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