Shoprite Holdings Limited has announced that it would shut down operations in the country by disposing a 100 per cent equity stake in its Nigerian retail supermarkets.
This is contained in its latest financial report for December 2020 operations, made available on 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 commission.
According to the company, the management expects the transaction to be approved by the end of the 2021 financial year.
Shoprite 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 that would be operating the outlets.
Chief Executive Officer of the company, Pieter Engelbrecht said, “We are at the approval stage in terms of the sale of our Nigeria supermarket operation.”
The South African company had in August last year in its half year 2020 financial report announced that it would gradually end its operation in Nigeria, notiing unfavourable market condition as reason.