Shoprite CEO speaks on plans exit to Nigeria in 2021

• To dispose 100% equity stake in Nigerian retail supermarkets

South African Company, Shoprite Holdings Limited, has revealed that the sale of its Nigerian outlets was being concluded.

The company disclosed that it would shut down operations in the country by disposing of a 100 percent equity stake in its Nigerian retail supermarkets, according to its financial report for December 2020 operations released on Tuesday, April 6.

Shoprite stated that it was awaiting approval from the Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.

The company added that the management expects the transaction to be approved by the end of the 2021 financial year.

According to the company, its 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.

Speaking about the company’s plan of exit from Nigeria,  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.”