Shoprite At Approval Stage To Sell Its Subsidiaries In Nigeria – Management
South African brand Shoprite Holdings Limited has announced it is currently waiting for approval to conclude the sale of its Nigerian subsidiaries.
According to its latest financial report for December 2020 operations obtained from the company’s website on Tuesday, Shoprite stated that the company was awaiting approval from the Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.
The management expects the transaction to be approved by the end of the 2021 financial year.
The approval will allow the firm to shut down operations in Nigeria by disposing a 100 per cent equity stake in its Nigerian retail supermarkets chain, citing unfavourable market conditions as reason
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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 with operating the outlets.
“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,” the Chief Executive Officer, Pieter Engelbrecht stated.
“Statement of comprehensive income reflects profit from discontinued operations separately; assets and liabilities relating to the Nigeria operations disclosed as held for sale,” the report stated.
Shoprite workers at Ikeja City Mall, Lagos, Palms Shopping Mall, Ibadan and other locations last week embarked on protest to press home their demands.
File Photo: Shoprite Supermarket